INSURANCE COMPANY LAYA has announced an average increase of 6.5% in the cost of its packages.

Changes will also be made to the benefits of some of the plans.

This will come into effect from 1 October 2024 and customers are to be informed of any changes to their plan, including price and benefits, in their renewal letter.

Those who are in the middle of a contract will not be affected until it ends.

The Health Insurance Authority (HIA) said that, while it’s aware that the price hikes may impact customers, “the health insurance market in Ireland is an open market, and insurance providers can make price changes as they see fit”.

“These prices are based on the cost of the claims that the insurers receive,” the HIA said in a statement.

There have been a number of health insurance price increases across the market in the past 12 months which the HIA and Laya attribute to medicines and technology becoming more expensive, as well as an increase in claims.

“According to our latest Annual Market Report, the total level of claims paid by insurers in 2023 rose by 15% on the previous year, and there was a slight increase in claims for private hospitals,” the HIA said.

“Consumers are free to move to any plan on the market at their renewal date, and we encourage everyone with health insurance to review their policy each year to make sure that they are on the right plan for their current lifestyle and health needs.”