Irish Life Health has today announced the third increase in the price of its health insurance plans since last July.
The health insurer said its price hike will result in an average increase of 5.3% on its gross adult premium.
But it added that the price increase across its various plans will range from between 1.6% and 7.9%.
The increase will apply for new customers from July 1, and existing customers whose renewal is due from the same time.
Irish Life Health said it was increasing its prices due to the ongoing, increasing demand for healthcare right across both public and private hospitals which it said has resulted in “very significant” and continued increase in the volume and size of claims.
“This trend is particularly noticeable from private and high-tech hospitals for healthcare provided to our customers,” the company noted.
It also said this trend is consistent with the overall experience for all health insurance providers.
Vhi and Laya have already introduced average price increases of 7% from March and April respectively this year.
Recent research from the Health Insurance Authority (HIA) found that in 2023, there was a 15% increase in the total level of claims paid by all insurers compared to 2022. The value of claims, according to the same research, now stands at €2.9 billion which is the highest of all years reported.
Irish Life Health has seen a 14% increase year to date in the value of private hospital claims compared to last year, it added.
Irish Life Health Managing Director Ger Davis said it was “regrettably necessary” to increase the prices of its insurance plans given the continuing rise in claims volume and value for those with health insurance.
“The health insurance market is going through somewhat of a correction as private hospitals are rapidly working their way through the backlog of procedures that built up during the pandemic and reflecting the challenging environment in the public healthcare system,” Ger Davis said.
“This means a quicker resolution for our customers, but it also means that the volume of claims we are experiencing is at an all-time high,” he added.
The Irish Life Health boss said the company was acutely aware of the impact a price increase can have on customers.
“We are keen to support them in finding an appropriate level of cover that suits their budget,” he said.
“We will continue to offer our customers best-in-class care through fast access to digital led primary care services across our plans and innovative care & recovery services in the home. This is in addition to cover for treatment in our nationwide hospital network, all of which help us mitigate the increasing claims trend,” he added.
Commenting on today’s price hike, health insurance consultant with the Lockton Group, Dermot Goode, said that while the average increase is just over 5%, the range could be anything from 1.6% to 7.9%.
“This means that consumers need to be wary of the average figures used as their increase could be significantly higher,” Mr Goode said.
“They also need to consider the cumulative impact of more than one increase since their last renewal date. As with the other insurers, the main drivers for these increases is the cost of claims especially from the private hospital sector,” he added.
