Health insurance premiums jump 13%

'There have been a number of health insurance price increases across the market in the past 12 months which is attributed to medical inflation and an increase in claims. We would always encourage consumers to shop around and find the best fit and value for their lifestyle needs.'

The average cost of health insurance has increased 13% in the past year and now stands at €1,685.

The sector's regulator, the Health Insurance Authority released its quarterly market statistics for the first quarter of 2024, showing premiums rising by an average of 4% this year.

According to the report, Vhi Healthcare retains the largest market share, followed by Laya Healthcare and Irish Life Health. 

There were 351 plans on the market as of April 1, and the majority of consumers have plans with substantial cover in private hospitals, while just 10% of consumers have plans with cover mainly in public hospitals.

Despite the ongoing increases in premiums, the section of the population covered by insurance continues to increase and now stands at 46.8%.

"The latest statistics show a steady growth in the number of people securing health insurance, with many choosing substantial cover, this may reflect an increased awareness and prioritisation of health among the Irish population," Ray Dolan, CEO of the Health Insurance Authority said.

"There have been a number of health insurance price increases across the market in the past 12 months which is attributed to medical inflation and an increase in claims. We would always encourage consumers to shop around and find the best fit and value for their lifestyle needs.”

Publishing its annual report last month VHI said it paid out 18% more in claims last year amounting to €1.7bn. 

Chief Executive Brian Walsh said that despite an extra 37,000 customers taking out new policies they were operating in a high-cost environment including high levels of medical inflation, staff wages and elevated energy bills.