The number of people buying private health insurance in Ireland has fallen sharply, raising concerns that rising prices may be deterring new entrants to the market, according to the Health Insurance Authority (HIA).
In its latest market bulletin, covering the first quarter of 2025, the HIA reported that just 7,318 new health insurance policies were purchased between January and March. That figure represents a dramatic fall from the 13,633 policies sold in the third quarter of 2024 and signals a broader trend of slowing growth in the sector.
Currently, just over 2.5 million people in Ireland have private health insurance, representing nearly half the population. However, the HIA noted that the pace of growth has been stalling. Its 2024 Annual Market Report showed only a 1.3% increase in coverage year-on-year, and the percentage of children insured continues to decline—down to 21.6% in 2024 from more than 23% in 2019.
The authority highlighted cost as a key factor contributing to the slowdown. The average price of a health insurance policy has now reached €1,929, nearly €200 more than in 2024.
“Although health insurance continues to be a very popular product, rising prices could potentially be affecting further growth in the market,” said HIA chief executive Brian Lee. “At an average cost of almost €2,000, it may be that many potential consumers no longer choose to buy private health insurance due to financial pressures or other considerations.”
Despite the overall number of plans on the market rising to 342, with four new options introduced in the last quarter, affordability appears to be a growing concern for consumers.
Lee advised consumers to shop around ahead of their annual renewal dates, particularly with many people set to renew in July. “We recommend reviewing your plan now to see what you’re covered for and what you actually use,” he said.
The HIA suggested that switching to a plan with a higher excess or trimming benefits that are rarely used could be effective ways to reduce premiums without fully dropping coverage.
As healthcare costs continue to rise, industry analysts warn that private health insurance may increasingly become a luxury, rather than a mainstream option, unless efforts are made to improve affordability and transparency in the sector.
