Laya health insurance prices to rise 6.6% as electricity costs hit two-year high

Laya’s gross premiums across its schemes will see an average increase of 6.6% from April 1.

Just under three million customers are facing fresh hikes in living costs, with health insurer Laya announcing yet another increase in premiums, and electricity wholesale costs at the highest in two years.

Following on from the below 4% increases by Irish Life in January and Vhi in March, Laya’s gross premiums across its schemes will see an average increase of 6.6% from April 1.

This will see an increase of up to €260 yearly on premiums for a proportion of its 700,000 customers.

This new pricing includes an increase in the Government levy on health plans which now accounts for about third of premium prices.

The advanced levy will increase by €49 per adult and €16 per child from April 1, which is an additional €130 for a family of two adults and children.

Dermot Goode, Head of Healthcare Division with Lockton Insurance Brokers Ireland, said: “We understand that this increase will impact around 91 of their plans which means that approximately 30 of their plans will not be affected by this latest increase. 

"Depending on the plan held, this could add €80 to €240 to the annual cost of cover for a single adult.”

Laya says that its overall claim costs have risen by 29% in the past 24 months, with demand growing “significantly” across private and high-tech hospitals.

Energy prices

It comes as the Central Statistics Office's (CSO) latest Wholesale Price Index data show wholesale electricity prices in January were at their highest level for more than two years.

They rose by 22.3% in the month to January 2025 and were 68% higher than January 2024.

It will come as a blow to Ireland's 2.2 million electricity customers already bracing themselves for a potential increase of around €100 in grid fees which the Commission for the Regulation of Utilities agreed is needed to fund a €1.4bn upgrade to Ireland’s electricity grid.

The Central Statistics Office's (CSO) latest Wholesale Price Index data show wholesale electricity prices in January were at their highest level for more than two years.

Added to this later this year is the potential knock on effect on prices consumers have to pay for a range of products due to an increase in wholesale prices manufacturers and producers have to pay.

This has seen, according to the CSO, producer prices for food products increasing by 7.6% in the 12 months to January 2025, while prices for food products, beverages and tobacco were up by 6.4%.

Some of the most notable changes in producer prices for the 12 months to January 2025 were an 18.6% increase in the prices for dairy products and a 4.1% increase in prices for meat and meat products.

Mr Goode warned that further health insurance hikes were possinble. 

“For the past two years, insurers (have) had two increases per year and we can’t rule out further increases towards year-end depending on the claims experience. The message to all consumers is clear; you must shop around for better value to avoid these price hikes."

On issues around electricity pricing, Daragh Cassidy of price comparison website Bonkers.ie said: “Anyone not in contract should consider switching energy supplier. 

"Anyone on standard rates will be paying around 35 or 36 cent per kilowatt hour including Vat for their electricity at present. But rates under 25 cent are on offer from some suppliers, which equates to a saving of over €400 a year for the average household."