Irish Life to hike health insurance premiums by average of 3.7%

Latest announcement marks the insurer's third price hike in just over a year, with increases in both January and July

Irish Life said that significant increases are being seen across day-to-day benefit claims as customers are seeking medical advice and diagnostics as they more proactively manage their health. 

Health insurer Irish Life will once again hike premium rates from next year despite a new entrant to the concentrated market.

The company is increasing prices from an average of 3.7% from January 1, the company said on Friday.

The move comes just weeks after the launch of Aviva-backed Level Health, which has promised cut prices and a more simplified health plan offering, with just four schemes, Plans A, B, C and D.

The latest announcement marks its third price hike in just over a year, with Irish Life putting through increases in January and July. 

Existing customers whose renewal is due from January 1 onwards will be hit by the latest premium rate increase.

"All health insurance providers are continuing to experience sustained increases in the cost of delivering healthcare, albeit at a lower level than in the recent past," the insurer said. 

"The increased use of more expensive, high-cost drugs is also a significant clinical factor, with Irish Life Health experiencing a 58% increase in these costs since 2021."

Irish Life said that significant increases are being seen across day-to-day benefit claims as customers are seeking medical advice and diagnostics as they more proactively manage their health. 

This is leading to customers seeing increased benefits from their insurance, especially in accessing primary care. The volume of these claims from Irish Life Health customers has doubled since 2021, the insurer added. 

To minimise costs where possible, Irish Life Health said it is reducing child prices, for the MyPlan range and Benefit plan by 19% to €200 per child.

"The sustained demand for health care and associated claims cost inflation has regretfully led to the need for increased prices across the health insurance market," said Irish Life Health Managing Director Ger Davis.

"We understand that customers are dealing with rising prices on a number of fronts and we have taken steps to mitigate our level of increase, and in some instances applied decreases where possible. Irish Life Health will continue to deliver access to better quality and more effective health services across our range."