A fourth health insurer is now operating in Ireland. With a focus on simplicity.
Ireland has a new health issuer.
Level Health, a joint venture between Aviva and a group including the former head of VHI, Oliver Tattan, has launched in Ireland.
You might remember that Aviva was previously a player in the health insurance market here. It had a joint venture with AIB but sold its stake to Irish Life in 2016. Although profitable, Aviva said at the time it was selling the business as it wasn't generating strong enough returns.
However, there are arguably even fewer profits being made in the health sector right now. Indeed VHI reported a loss of over €40 million for last year. So Aviva’s decision to enter the market again has raised a few eyebrows.
But it’s thought Aviva decided to reconsider the health insurance market after French insurance giant Axa bought Laya Healthcare last year. Aviva may have been keen to ensure its product offering didn’t fall behind that of its arch rival.
So what is Level Health offering?
Simplicity seems to be the aim of the game with Level Health's offering. For now at least.
The insurer is only offering four plans (A to D), which it says are based on careful research of what people actually need.
The insurer also says it has agreements with all public, private and high-tech hospitals as well as access to more diagnostic, urgent care and emergency care centres than any other health insurer here.
Other benefits include:
- Free cover for all children under three
- Free multi-trip worldwide travel insurance (including winter sports cover) with every plan
- Discounts on Aviva motor, home and mortgage protection insurance
- Free personal accident insurance cover of €15,000 as well as children’s life insurance cover of up to €5,000 per child
And anyone who signs up before 1st December 2024 will get a 10% discount on their premium.
For too long, customers have been overwhelmed by confusing plans, limited options, and a lack of real alternatives. Level Health is the cure. We're not just entering the market - we're reshaping it, bringing clarity, simplicity, and genuine competition.
Jim Dowdall, CEO of Level Health
Will Level Health’s entry lead to lower prices?
This is the key question most consumers will be asking themselves.
And after a raft of premium hikes by all health insurers over the past 18 months, it’s understandable.
The answer is: maybe.
A new provider will obviously lead to more choice. Mind you, there are already over 300 health insurance plans on the market for consumers to choose from. So one could argue that there's more than enough choice already.
But whether consumers can look forward to lower premiums is debatable. Indeed no sooner had Level Health launched, Irish Life Health announced a 3.7% price hike for this January.
More competition in a market will usually only lead to lower prices if it’s a lack of competition that’s keeping prices high in the first place.
However in recent years, an increase in the number of claims, partly as a hangover from Covid but also due to an ageing population, as well as rampant medical inflation (which has been running far in excess of general inflation for years given the huge costs of new treatments) has been behind most of the hikes in premium costs.
That's not going to change much with a new provider unfortunately. In short, additional providers may not make much of a difference in a market where rising costs are the main factor behind rising premiums.
For example Ireland has 11 energy suppliers. But that didn’t stop prices more than doubling over the past few years given what was happening elsewhere in the wider market.
Level Health claims that it's isn't burdened by legacy technology systems and can use the latest tech to keep its administration costs low. But administration costs are only a small part of a company's overall cost base.
There's also an argument about how many providers a market the size of Ireland's can handle. Some experts have questioned the ability of the market to hold more than three or four players long term. We may yet see more buy-outs, consolidations and sales in the years ahead meaning we're back with a three-player market.
However on first glance Level Health’s pricing does look very attractive for most people. And consumers who have their car or home insurance with Aviva may benefit from extra savings here. But don't be surprised if you hear the company also announce some big price hikes over the coming years.
Review your health cover
Regardless of the impact of Level Health on the market over the coming years, you can still seek out better value by shopping around.
The HIA offers a free and comprehensive comparison tool to help consumers compare health insurance policies.
However health insurance is a very complex product. The right plan for you will depend on many different factors. And it can also be quite difficult for the average person to understand exactly what’s covered with every policy. If you’re not careful it’s very easy to overpay, or equally as worse, underpay and not be covered for the treatment you need.
Treatments, consultant cover, the excess, and outpatient benefits can all differ wildly between plans. And health insurance plans are constantly being updated by insurers too. What’s more, getting the right info on corporate plans, which often offer the best value and which are legally open to everyone, can sometimes be tough.
There are independent health insurance experts who, for a small fee, can conduct an over-the-phone consultation with you and recommend an appropriate plan.
Unfortunately us Irish don’t like paying for financial advice. But for a relatively small fee of €100 or €150, say, you could end up saving well over €300 or €400 a year on your health insurance. And you’ll get a plan that’s tailored to your own specific needs. So don't be afraid to check out these services too.
