Health insurance costs rise by 7% as people urged to consider options 

Data shows that 71% of people have never switched their policy 

VHI and Laya Healthcare have recently announced new price increases from October 1 — the second price hikes for each so far this year. Photo Eamonn Farrell/RollingNews.ie

The cost of the average insurance premium has increased by 7% during the first half of the year as the Health Insurance Authority encourages people to consider switching to save money.

However, these figures don’t even include the most recent price increase from Laya Healthcare and VHI, both of which will take effect in October.

VHI premiums are set to increase by 3.5% — after already announcing a 7% hike in March. The average Laya Healthcare premium will increase by 6.5% which is also its second price increase this year, following a 7% hike in April.

Irish Life Health raised its premiums by 5.3% on July 1.

According to the HIA, VHI is the largest health insurance provider in the State with 48.5% of the market. Laya Healthcare has 28.4% of the market and Irish Life Health has 20.4%.

There are currently 340 health insurance plans on the market. The HIA said the sheer volume of plans can leave consumers feeling overwhelmed by the number of options and that some find it challenging to choose the best plans for their needs.

Of the plans that were active between January and June, the average premium now stands at €1,647. In that time, four plans were retired and two new ones were added.

The HIA said that health insurance premiums have increased due to health care inflation and an increase in the number and cost of claims.

HIA figures show that approximately 2.49 million people in Ireland currently have health insurance which equates to 46.8% of the population — an increase of 1.3% compared to last year.

In the three months to the end of June, close to 6,000 new people have taken out health insurance.

Consumer survey

In a 2023 consumer survey conducted by the HIA, 71% of people said they have never switched policy which means they could potentially be paying far more than they need to for their insurance cover. Of those who have switched, 54% said they’ve only switched once.

Among those who’ve chosen not to switch providers, the HIA said there was a significant increase in the perception of it being difficult to switch.

Of those who have health insurance, the average length of time with their current policy is 20 years and the average length with their current provider is 15 years.

Of all policy-holders, 22% are over the age of 65 years old, and those over the age of 55 are significantly more likely to be paying substantially more for their health insurance than they may need to due to not having reviewed their policy for a long period of time.

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The HIA said it is aiming to reduce confusion for consumers without harming competition which includes looking at the number of plans available.

Chief executive of the HIA Brian Lee said if customers are due to renew their health insurance “always take the time to review your current plan to ensure you’re on the best plan for you”.

The HIA published this data ahead of its inaugural conference today to explore the future of the health insurance sector and how it can support consumers in choosing the correct cover for their needs.

Mr Lee said the conference will “explore strategies to enhance understanding and transparency in the market, and as a step in making the market more accessible and understandable for everyone”.