Irish Life Health has announced that it will raise its health insurance premiums by an average of 3.7% from January 1, 2024. The price hikes will affect new customers starting from the new year, as well as existing customers whose policies are up for renewal after that date.
The insurer attributed the price increase to the continued rise in healthcare delivery costs, though it stated that the increase is lower than those seen in recent years. A key factor in the higher premiums is the growing use of more expensive medications. Irish Life Health also pointed to an increase in day-to-day medical claims, as more customers proactively manage their health and seek medical advice and diagnostics. The volume of such claims has reportedly doubled since 2021.
Ger Davis, Managing Director of Irish Life health, expressed regret over the need for the price increase, saying, “The sustained demand for healthcare and associated claims cost inflation has regretfully led to the need for increased prices across the health insurance market.” He acknowledged the financial pressure many customers are facing and emphasized that the company had taken steps to minimize the impact of the rise, with some plans seeing price reductions.
To alleviate costs, Irish Life Health has introduced a 19% reduction for child cover under its MyPlan range and Benefit plan, bringing the cost for each child down to €200. Additionally, the insurer announced that its entry-level policy, First Cover, would see a 2.5% price decrease, bringing the annual premium to €500 or €41.66 per month—making it the lowest-priced entry-level health insurance option on the market.
The premium increase comes amid broader trends in the health insurance sector. The Health Insurance Authority (HIA) reported that premiums across the market have risen by an average of 11% over the past year. It also noted that the total amount of claims paid by insurers in 2023 had increased by 15% compared to the previous year, alongside rising healthcare service costs.
Irish Life Health had already raised premiums twice earlier this year—by 5.3% in July and 4.8% in January. Other insurers have also increased their rates, with VHI raising premiums by an average of 3.5% in October and Laya Healthcare implementing a 6.5% increase during the same month.
With the health insurance renewal season in full swing, the HIA encourages policyholders to review their plans before renewing to ensure they are getting value for money. Although switching between providers is relatively uncommon, experts suggest that consumers could potentially save money by comparing policies and considering which benefits are most important to them. The HIA provides a comparison tool on its website and a helpline for any inquiries.
