Irish Life Health is to increase its prices by an average of 3.7% from the start of next year.
The insurer said the changes will apply for new customers from 1st January and existing customers whose renewal is due from that date onwards.
The provider blamed the rise on sustained increases in the cost of delivering healthcare, albeit at a lower level than in the recent past.
It also said use of more expensive drugs is a significant factor.
It added that increases are being seen across day-to-day benefit claims as customers are seeking medical advice and diagnostics as they more proactively manage their health, with the volume of these claims doubling since 2021.
“The sustained demand for health care and associated claims cost inflation has regretfully led to the need for increased prices across the health insurance market,” said Irish Life Health managing director, Ger Davis.
“We understand that customers are dealing with rising prices on a number of fronts and we have taken steps to mitigate our level of increase, and in some instances applied decreases where possible.”
The insurer said to minimise costs where possible child prices for the MyPlan range & Benefit plan will reduce by 19% to €200 per child.
It also claimed that it will have the lowest priced entry-level policy on the market with a 2.5% reduction on the price of First Cover, which will now be €500 annually or €41.66 per month.
The move by Irish Life Health is the latest price increase by a health insurer in recent months.
The Health Insurance Authority, which said it had received notice of the change, said on average health insurance prices across the market have risen by 11% across the last year.
“It is also worth noting that the total level of claims paid by insurers in 2023 rose by 15% on the previous year and there are increasing costs in the delivery of health services,” it said.
Irish Life Health had already increased premiums by 5.3% in July and 4.8% in January.
In October VHI increased its premiums by an average of 3.5%, while Laya Healthcare’s prices rose by an average of 6.5% the same month.
Recently, Level Health became the first new entrant into the Irish market for many years.
Experts hope its arrival could spark a price war between the now four providers offering health insurance here.
This time of the year is the busiest for health insurance renewals with around 1.25m or 50% of the market due to receive renewal notices around now.
The HIA said it encourages policy holders to review their plans before renewing to make sure they are getting value for money.
Switching levels are low in the health insurance market, despite significant savings being on offer for many of those who do change providers.
“We know that many consumers will be facing price increases, but you may be able to find better value by shopping around and thinking about what benefits are most important to you,” the HIA said.
The HIA has a helpline (01-4060080) to answer queries about health insurance and it also has a comparison tool on its website – hia.ie.