More than 20,000 families have cancelled health insurance cover for their children over the past year — the equivalent of 55 cancellations a day.

A second health insurer is set to ask cash-strapped customers to pay even more for cover, less than a week after politicians were warned a fresh 20%-40% industry hike is on the cards.

Thousands of private health insurance holders are set to suffer a second double-digit price hike this year — marking the start of a threatened 40% new cost surge across the sector.

Health insurers have claimed Health Minister James Reilly’s reform plans will “force” them to impose new 20-40% premium cover price hikes onto already cash-strapped customers.

Senior figures in the country’s largest health insurers yesterday demanded action to stop younger, healthier people fleeing the market, leading to a “vicious circle” of rising premiums.

Hard-pressed families face soaring health insurance premiums and higher energy costs from the middle of this month — with worse to come.

A significant jobs announcement will be made later by a new health insurer coming into the market.