New health insurer set to undercut rivals with hopes of price war to ...
The new player, backed by insurance giant Aviva, will have just four schemes, and its offering is expected to put it up to existing operators VHI Healthcare, Laya Health and Irish Life Health
New insurer Level Health is set to shake up the market with prices that will be up to €500 cheaper for a family than its rivals.
It is also offering a string of add-ons to those who sign up with it.
Level Health’s high-end plan will be €2,700 cheaper for an adult than similar plans from the existing players.
The keen pricing and extra benefits are set to force a response from its rivals, with consumers hoping it will lead to a price war.
The new player, which is backed by insurance giant Aviva, will have just four schemes, Plans A, B, C and D.
Its offering is expected to put it up to existing operators VHI Healthcare, Laya Health and Irish Life Health.
New health insurer set to shake up the market
The entry of a new player comes after multiple premium rate rises from the three main players this year that have seen some plans increase in price by as much as 25pc when the various rises are added together.
Aviva Insurance-backed Level Health claims its mid-level plans will be up to €500 a year cheaper for a family of two adults and two children than the plans on offer from rivals VHI, Laya or Irish Life Health.
It is including free cover for children under three on all plans, and free multi-trip worldwide travel insurance, which it says is worth €228 for a family.
It said members will have access to all public, private and high-tech hospitals.
There will also be access to minor injury units and private emergency departments, and scan centres nationwide for those who switch to it.
The new health specialist is also offering its members discounts from Aviva Insurance on a range of cover.
Level Health customers will get 50pc off Aviva home insurance, a 15pc discount on motor cover, and 15pc off mortgage protection cover.
Customers will be able to consult a doctor or healthcare professional via instant digital access at any time that suits them or make a face-to-face appointment.
Aviva Insurance has a 50pc stake in the new operation, and is understood to have pumped more than €20m into the venture.
Level Health chief executive Jim Dowdall said the Irish health insurance market was broken.
“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,” he said.
He said health insurance customers would now have a real choice. The start-up is expected to put huge pressure on VHI Healthcare, Laya Health and Irish Life Health.
Health insurance expert Dermot Goode, of TotalHealthCover.ie, said: “Over the last two years, health insurance consumers have been hit hard by multiple price hikes, benefit reductions and plan retirements.
“The entry of Level Health couldn’t come at a better time as we approach the peak renewal period, with about 50pc of the market or nearly 1.25 million people due to renew their cover.”
Mr Goode said the Level Health high-end plan, Plan D, will be up to €2,700 cheaper per adult than the same plans from VHI, Laya and Irish Life.
He said the mid-level family scheme, Plan B 300, will be €200 to €600 cheaper for a family of four, depending on the level of cover chosen. This plan gives access to private hospitals.
“No doubt there will be a quick response from the existing health insurers – VHI, Laya and Irish Life Health – especially if they see existing members switching for lower cost cover,” Mr Goode said. “This can only benefit all Irish consumers especially if this prompts a ‘price war’ just before the busiest renewal period.”
The new insurer is being run by industry veterans Oliver Tattan, a former head of VHI, and Mr Dowdall, who used to run Irish Life Health.
Mr Tattan set up Vivas and GloHealth, both of which were sold to larger health insurance players.
The two are joined by Stephen Loughman and Ruth Bailey, who have been involved in previous health insurance ventures with them.
The new venture comes after the three existing players in the market announced multiple price rises in the past year.
The increases from VHI, Laya and Irish Life mean some families are set to be hit with rises of up to €500-plus a year if they renew on the same plans.
The cumulate rises this year are between 8pc and 25pc, depending on the plan. And the insurers have cut a string of benefits on plans.
