Private health cover to increase by 30%

Private health cover is set to cost 25% to 30% more in the next two years, adding to the pain for customers whose premiums have already doubled since 2007.

Insurer Aviva issued the warning after commissioning a report by UCD economist Colm McCarthy, which concluded that the combination of recession and unhelpful Government policy was threatening the future of the “fragile and contracting” private health insurance industry.

Mr McCarthy said this jeopardised the Government’s proposal for a system of universal health insurance, which is pencilled in to be in place by 2016.