Private health insurance saw somewhat of a revival in fortunes in 2015, according to the Health Insurance Authority’s annual reportr, with growth of 97,000 in the number of people holding PHI policies, and total premium income of €2.5 billion, which indicates that 46% of the population is now covered by private health insurance.

A major factor behind the numbers boost was the introduction of lifetime community premium loadings on 1 May 2015, aimed at encouraging people to take out private health insurance at a younger age. The average premium paid fell by 2% to €1,173, mainly because many of the new policyholders availed of lower cost introductory PHI products providing limited cover.

HIA CEO Don Gallagher said: “2015 was a notable year for the regulation of the private health insurance market in Ireland. Improvements in the wider economy helped the market for private health insurance. The number insured at the end of 2015 was 2.12 million, or 46% of the population. This was an increase of 97,000 on the previous year. This turnaround was due to a combination of factors including rising employment in the economy and the introduction of Lifetime Community Rating.

“At the end of 2015 there were 360 private health insurance products being marketed, a marginal increase on 355 at the end of 2014. A number of these were low cost products introduced in the run in to the introduction of Lifetime Community Rating on 1 May 2015. Notwithstanding this, the number and range of products available means that consumers continue to need support to work out which products best meet their needs.

“A core function of the authority is to provide information to consumers about private health insurance and their rights within our community-rated market. During the year, the authority had approximately 435,000 consumer contacts, most of which were through its website, which provides the only comprehensive comparison tool of all health insurance plans in the market. It allows consumers select and compare products for benefits and pricing.

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“Consumers should really be checking their current cover and pricing at least every two to three years to make sure they are receiving value from the market,” he added.

Community Rating

Research commissioned by the authority showed an improvement in satisfaction levels among consumers on all aspects of health insurance. Other research revealed strong support for community rating in the private health insurance market and the policy which prevents financial discrimination on the basis of age, health or gender, with three-quarters of respondents agreeing that the policy should continue.

Average age of policyholders continued to rise, but not as fast as previously, again due to the introduction of community rating and the general improvement in the economy.

VHI had the largest overall share with 53% of the PHI market but 83% of the insured population over 80 years of age. Its market share of premiums was 61% and 67% of claims paid.