Health insurance premiums rise 11% to an average of €1,830

More than 2.5m people hold health insurance policies.

Ireland's private health insurance market has grown again, with 2.53m people now holding policies, representing more than 46% of the population.

However, the latest market bulletin for the second quarter from the Health Insurance Authority (HIA) shows a continuing trend of a gradual slowing of growth in the health insurance market. There was an increase of 4,130 people with private health insurance in the second quarter, down from an increase of 7,318 in the first three months and 13,633 in the third quarter of last year.

The average adult premium paid is now €1,830, with an average price increase of 4.5% on health insurance plans currently in the market since January 1. Compared to Quarter 2 of  2024, there has been an 11% increase in the average premium paid by consumers. In its report, the HIA noted that insurers have also flagged new price rises due to come into effect from October 1.

The HIA said there are 344 inpatient plans available to consumers, with six new plans added since the start of the year. The VHI remains the dominant player in Ireland with 48.3% of the market, followed by Laya (28.1%), Irish Life (20.3%) and Level Health (0.7%), with Restricted Membership Undertakings (RMUs), which provide insurance to their members only, accounting for 2.6% of the market.

"Health insurance remains a popular choice for nearly half of the population, but rising costs may be starting to impact growth in the market, and some consumers may be considering whether private health insurance fits within their budget," Health Insurance Authority CEO Brian Lee said.

"If you're renewing your plan soon, it's important to review what you're paying for and what you actually use. Even if you're happy with your provider, you might find a better-value plan that suits your needs. Our free and impartial comparison tool makes it easy to explore your options, and our team is here to help by phone or email if you need support."

A separate report, by Milliman, commissioned by the representative body Insurance Ireland, shows the wider insurance market has also grown with employment in the industry rising over 20% to more than 43,000. This compares to 35,000 roles in Milliman’s last report of the industry conducted in 2023. The report shows that contributions by the insurance sector to the Exchequer have grown to €3bn  annually in 2024, up from €2.7bn recorded in 2023.

Their report said insurers based in Ireland paid €74bn in claims in 2024, up from €68bn in 2022. As of June, there were 178 insurance and reinsurance companies based in Ireland. The overall industry has grown considerably in recent years, from €73bn in gross written premiums in 2017 to €109bn in 2024.

What's your view on this issue?

You can tell us here

The report shows that Ireland is home to a substantial international insurance industry. With gross written premiums of €40bn in 2024. Irish insurers are the second largest writers of cross-border business in the EU, after Luxembourg. However, according to the report, the industry is seeing a continued declining trend of international companies and captives establishing in Ireland, which has been visible since the peak in 2009.

Overall, the number of entities has reduced by 42% since then, with the number of life companies down 44%, the number of non-life companies down 33%, and the number of reinsurers down by 50%. However, it is also important to note that, despite this reduction, the size of the industry measured by premium volumes has continued to grow.