QUESTIONS HAVE BEEN asked over why Ireland’s health insurance companies are raising their prices so frequently, with the most recent price hike happening just last week. 

All of Ireland’s main health insurance companies increased their prices at least twice this year, while Irish Life Health has raised its prices four times in twelve months.

The Health Insurance Authority says that the average cost of plans has increased by 8% since the beginning of 2025 alone. Latest figures from the CSO indicate that the inflation rate for the twelve months up to October 2025 was 2.9%.

The companies blame the increases on the rising cost of healthcare and a rise in insurance claims.

Claims jumped after the Covid-19 pandemic, but new figures from the health insurance watchdog show that this rise is now slowing sharply.

In 2024, the growth in claims was less than half the rate seen in 2023, and a record 2.54 million people now have health insurance. So why are companies still increasing their prices so frequently?

Laya and VHI each brought in two price increases this year, ranging, on average, from between 3% and 6.6% each time. On top of the three increases carried out in 2025, Irish Life Health most recently announced an average rise of 5% on adult premiums, coming into effect in January. 

The Health Insurance Authority (HIA) said the average yearly health insurance premium for an adult is now €1,886. 

Continuous price hikes

According to health insurance expert Dermot Goode, this number could increase to €2,000 by the end of this year – and continue rising by 10% year-on-year.

He said ”the old rules are gone out the window” when it comes to premium hikes.

“[Companies] are looking at rates on a month-to-month basis now,” he told The Journal.

Laya Healthcare said health claim costs are “the single biggest factor determining premiums”, while advances in medical technology and new therapies are “driving the highest healthcare costs we’ve seen in 25 years”.

“Making timely, evidence-based adjustments allows us to manage cost pressures as they happen, rather than passing on a larger single increase later,” a spokesperson told The Journal.

VHI, the most popular health insurance provider in Ireland with almost half the market share, also highlighted the cost of claims and “innovative services” it offers.

It paid €1.74 billion in claims in 2024, but collected €1.88 billion in premiums for the same year and recorded a net surplus of €36m.

Speaking to The Journal, a spokesperson said the decisions are “based on forward-looking forecasts of member access needs and healthcare costs”.

Not everyone agrees with this synopsis.

Labour Party TD Marie Sherlock said “good explanations” are not being offered for the increase in premium prices.

Speaking to The Journal, she said businesses across many sectors are raising prices and using the general excuse of inflation – even if it’s not directly connected to their product.

There are no limits on the pricing set by health insurers. As the Health Insurance Authority told The Journal: “Insurers are free to set their own prices, and the HIA has no role in price-setting, as any involvement would interfere with market competition.”

Impact

The timing of the increases tend to cluster around April and October, while the announcements are made in the first or last quarter of the year.

Although changes made won’t impact clients until their contract expires, insurance expert Goode warned that the frequency of the hikes can negatively impact consumers.

He said that due to the volume of price changes carried out in a year, consumers who auto-renew their policies may have forgotten about the previous changes.

He also warned that consumers may also make the mistake of trusting the average increase advertised by the insurance provider, but the policy they are on may have increased by double the average.

“Never ever auto-renew your cover. Do not accept these increases,” he advised, urging consumers to review their cover every year to find the best deal.

“It’s a perfect storm right now for consumers,” he said. “Rates are going through the roof, but benefits are also being cut.”

To retain their “lucrative corporate clients” despite the frequent increases, Goode said insurance companies are getting “creative” with new policies and favourable rates for companies.

He said few people know that anyone can avail of attractive policies designed for corporate clients.

Value for money

Sherlock put the uptick in private health insurance down to long waiting lists for public health services – but she said people are not getting the benefits they deserve for the cost they’re paying.

“People are paying significant premiums but getting very little in return,” she told The Journal.

Goode agreed, adding that any average person who is paying over €2,500 per year is not getting good value for money.

He said consumers, particularly older people, are so afraid of losing important health protections that they won’t change their policies. In some cases he said people are paying up to €10,000 per year for a policy which could be got for half that.

He advised the public to shop around for the best deal, give their insurance providers a budget and ask them to specifically review all policies, including corporate deals.

Without these tactics, he said “people will have to brace themselves for a minimum of a 10% increase”.

Irish Life Health did not respond to a request for comment.