Health insurer Laya has announced an average 4.7 per cent rise in the cost of cover. The company said it will add around €80 to the cost of private cover per adult across 65 plans.
The insurer, which has around 720,000 customers making it the second largest player in the market, blamed healthcare costs, which, it said, are rising globally and in Ireland.
Laya last raised prices in October, by an average of 4.5 per cent. It also imposed a 6.6 per cent increase earlier in the year. In percentage terms, its average prices have been rising faster than those of its rivals, VHI and Irish Life Health in recent times.
“Laya pays almost €9 of every €10 it receives in premiums back to members in claims,” the company said, noting that increasing demand for private care – particularly in oncology, cardiology, orthopaedics and spinal surgery – had led to a 15 per cent rise in costs for private and high‑tech hospital bills.
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Laya said prices would remain unchanged on 37 – or over one-third – of its plans, with reductions applied to several others.
Analyst Dermot Goode said the increases would see premiums rising by anything from €62 to €217 per adult depending on the plan they are signed up to.
“Looking at some of their mid-level schemes, this could cost a typical family an extra €148-€203 for the year.”
He noted that the rise in premium on some plans would be over 9 per cent
“For their popular Simply Connect Plus scheme, we understand this will increase by 9.6 per cent which is an extra €261 per adult or €520 a year for a retired couple,” Mr Goode said.
He advised Laya customers to ignore the headline “average” increase and check the actual impact of whatever plan they have signed up to. “Customers must avoid auto-renewing without reading the small print, Goode said.
While noting that the announcement had been expected after VHI and Irish Life had announced higher premiums for their customers in the last month, he said the news “couldn’t have come at a worse time for consumers and no doubt many will have no choice but to shop for better value”.
Laya has introduced more free cover options for children under the age of 18 as well as reductions in the price of cover for children and young adults on certain plans.
But it is reducing cover in other areas. Outpatient excess is rising on 47 Laya plans while the company is also introducing “shortfalls” on orthopaedic and ophthalmic procedures across more plans which means patients will be required to fund part of the cost out of their own pocket.
The insurer said it is retiring 16 of its older plans “to simplify choice and improve member value”. Anyone on those plans will be transferred to “suitable and better value alternative plans at renewal”, Laya said.
Commentating on the rise in premiums, managing director Dermot O’Connor said: “Our members want to be seen quickly, have real choice in their care, and know they’re getting good value. We’ve taken care in this review to balance affordability with access.”
He said the insurer was also investing in faster access and benefits in areas where members feel the greatest pressure, “particularly specialist access in areas like dermatology and menopause”.
Profits at Laya Healthcare more than doubled last year to €19.02 million. The company is owned by French headquartered insurance giant, Axa after its €650 million acquisition from Corebridge Financial, a subsidiary of rival AIG, in October 2023.
