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Irish Life insurance to hike premiums by average of 5.3% on adult plans

Changes will apply to new customers from July 1st and existing customers renewing policies from same date

It is the third price increase imposed by Irish Life Health since July 2023. File photograph: Getty Images

Jade Wilson
Fri May 17 2024 - 13:34

Irish Life Health is to increase its premiums again from July 1st, the insurer announced on Friday.

The provider is making a number of changes to the price of its health insurance plans, with an average increase of 5.3 per cent on the gross adult premium. The increase across plans ranges from 1.6 per cent to 7.9 per cent.

These price changes will apply to new customers from July 1st, 2024, and existing customers whose renewal is due from July 1st, 2024.

It made the decision “due to the ongoing, increasing demand for healthcare right across both public and private hospitals”.

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“This has resulted in the 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,” a statement said.

Against this backdrop, Irish Life Health has seen a 14 per cent increase year to date in the value of private hospital claims relative to 2023.

It is the third price increase imposed by Irish Life Health since July 2023.

Industry expert Dermot Goode, who is a health insurance consultant with the Lockton Group, said consumers “need to be wary of the average figures used as their increase could be significantly higher”.

“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 said.

The likely increase year-on-year for a family of two adults and two children under the age of 18 would be between €242 to €630 depending on their plan and the percentage increase, he said.

VHI and Laya have already introduced increases of 7 per cent on average from March and April respectively in 2024.

Irish Life Health still appear to be offering the lowest cost cover in the market on their First Cover scheme, Goode said.

However, all consumers “need to brace themselves for double-digit increases in 2024 similar to what happened in 2023″.

“New plans are being launched all the time so those who take the time to shop around will always find the best deals,” he said.

Irish Life Health managing director Ger Davis said it was “regrettably necessary” to increase the prices.

“We are acutely aware of the impact a price increase can have on customers and we are keen to support them in finding an appropriate level of cover that suits their budget. Our customer care team is available to answer any questions they may have,” he said.

Jade Wilson

Jade Wilson

Jade Wilson is a reporter for The Irish Times

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