A new health insurance company backed by Aviva Insurance Ireland and led by a group of industry veterans launches on Friday with claims that it can offer “meaningful savings” to customers, following a series of price hikes by the three existing players in the market.
The joint venture, Level Health, is led by chief executive Jim Dowdall, a former head of Aviva in Ireland, and chaired by one-time VHI head Oliver Tattan. Aviva Insurance Ireland will underwrite the company’s health policies.
Mr Dowdall said each of Level Health’s four different plans is cheaper than the nearest comparable plans offered by the three other providers, VHI Healthcare, Laya Health and Irish Life Health, who have a total of 350 different plans between them.
“The launch of Level Health marks a pivotal moment for a broken Irish health insurance market,” Mr Dowdall said. “For too long, customers have been overwhelmed by confusing plans, limited options, and a lack of real alternatives.”
Aviva has invested €15 million of equity in Level Health, according to Companies Registration Office filings. Mr Dowdall said that the total committed by Aviva and the venture’s founders, which also include industry figures Stephen Loughman and Ruth Bailey, amounts to “in excess of €20 million”.
Aviva sold its previous health unit, Aviva Health, in 2016 to Irish Life which also moved at the same time to buy out the 51 per cent of another provider, GloHealth, it did not already own. The combined business was renamed Irish Life Health and is now the smallest of the three existing private health players in the market.
The second-largest player in the market, Laya Healthcare, was acquired for €650 million by Axa Ireland, the largest general insurance company.
State-owned VHI remains the largest health insurer in the market with more than 1.2 million medical coverage customers, giving it almost a 49 per cent market share.
The three existing players have announced multiple price increases in the past year, generally citing increases in the volume and costs of healthcare claims.
Meanwhile, Aviva Insurance Ireland’s UK parent, Aviva plc, published a trading update on Thursday showing that the Irish general insurance unit posted an 8 per cent increase in gross written premiums for the first nine months of the year, to £375 million (€451 million).
Irish premiums were up 11 per cent when currency effects were stripped out, reflecting “strong rate and new business growth in both personal and commercial lines”, it said.
The latest figures from the Central Statistics Office show that car insurance premiums rose 11 per cent in the 12 months to October, while home coverage rates increased 7.6 per cent. Insurers have attributed much of the increase in motor rates to a rise in damage claims, reflecting a surge in costs of labour and spare parts.
However, Aviva Insurance Ireland also saw a pickup in profitability this year as its combined operating ratio — which compares claims and expenses to premiums earned — fell to 89.8 per cent from 96 per cent for the year-earlier period.
This was driven by a “material” release of reserves that had been set for prior-year claims, as the Supreme Court effectively upheld new guidelines for generally lower payouts. A ratio below 100 per cent indicates an insurer is writing business profitably.
Level Health Offers Cheaper Plans, Simplicity and Extra Benefits
A new health insurer, Level Health, is launching in Ireland today (Friday 15th November) promising simplified and cheaper policies. The launch is expected to shake up the market and push competitors to drop their prices.
Level Health is a 50/50 joint venture between insurer Aviva and its founders and senior executives which include a number of experienced industry veterans. The company has been co-founded by former Vhi chief executive, Oliver Tattan.
The company claims it will simplify overcomplicated insurance policy options by offering just four plans, in comparison to the nearly 350 policy options currently available with existing insurers.
Level Health says it has agreements with all public and private hospitals, as well as access to more diagnostic, urgent care and emergency care centres than any other health insurer here.
Children under the age of three will be covered free on all plans and overall a family of four who switch to it from a comparable Laya, Vhi or Irish Life Health plan can expect to save an average of €500, it claims.
It will also offer instant digital access via What's App to doctors and healthcare professionals and allow customers to make a face-to-face appointment if they would prefer. Plus, it offers free multi-trip worldwide travel insurance, including winter sports, for the term of a policy.
Customers who move to Level Health from another insurer with a comparable level of cover will not have to re-serve waiting periods.
“The launch of Level Health marks a pivotal moment for a broken Irish health insurance market,” said Jim Dowdall, CEO of Level Health.
“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.”
New Insurer Could Spark Price War
Level Health – a joint venture with Aviva – will offer four plans, and believes by simplifying the structure it will be more cost-efficient.
It will also provide customer support and telephone advice including WhatsApp messaging.
“A recent Health Insurance Authority (HIA) report found that due to the bewildering range of health plans, customers have an overwhelming task trying to choose a plan.
“Level Health are passionate about simplifying the market and have made it their mission to remove unnecessary complexity and confusion,” it says.
Could This Be the Start of a Price War?
Its entry to the market brings the number of health insurers here to four, including VHI, Laya and Irish Life.
Aviva previously offered health insurance but sold its business to Irish Life in 2016.
The entry of a new competitor in the market was welcomed last night by health insurance expert Dermot Goode of Total Health Cover, part of the Lockton Insurance Group.
He said the market needs more competition as customers are facing increases on renewals “across the board of anything from 8% to maybe 25% depending the plan”.
He said: “Those increases are facing everybody right now, and half the market is going to renew in the next three months. The notices are going to go out in the next few weeks.”
Customers face a double-whammy of sharp premium increases and reduced benefits. Many goodvalue health plans are also being discontinued.
Mr Goode added: “If you look at the market right now, it really is a perfect storm hitting Irish consumers of health insurance.
“There couldn’t be a better time for a new entrant to come in. The pricing is very competitive, the benefits are very comprehensive, and there’s also a whole load of extras.
“I think they’ve done a very good job of stirring it up in a positive way.”
Industry Veterans Lead New Health Insurance Venture
Level Health boss Jim Dowdall said: “For too long, customers have been over - whelmed 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. We’re proud to lead this transformation.
“Our Level Health team, with decades of health insurance industry experience, knows what’s been missing – simplicity, meaningful savings and better access to quality healthcare.
“Backed by the strength and expertise of Aviva, we are offering a true alternative to the status quo.
“Health insurance customers now have a real choice. This is more than a launch; it’s the beginning of a new era in health insurance.”
The company promises to “reshape how health insurance can work by offering clarity, simplicity, and genuine competition”.
“Customers have been crying out for simplicity, and with four plans that meet everyone’s needs, customers now have a real alternative,” it said.
“Level Health provides cover for all public and private hospitals as well as access throughout the country to more diagnostic, urgent care and emergency care centres than any other health insurer in Ireland.”
Customers will have unlimited access to telemedicine services with access to health professionals 24 hours a day, all year round via video calls, secure messaging and WhatsApp.
Customers will be offered discounts on Aviva’s home and motor insurance, as well as free personal accident cover.
A family of four can save around €500 if they switch to Level Health from a comparable Laya, VHI or Irish Life health plan to Level Health’s Plan C.
These comparisons are based on the HIA report on the 30 most commonly held health insurance plans last year. Children under three are also included on all plans at no extra cost.
Aviva Sees Profitability Jump
The arrival of a new health insurance provider could see health insurance premiums lower.
Recent figures from the CSO suggest that health insurance premiums are increasing at rate of 10%, though costs could be higher depending on the insurer.
On The Pat Kenny Show last week, Irish Independent Personal Finance Editor Charlie Weston said a new insurer entering the market could force a reaction from VHI, Laya Health and Irish Life.
“They’ll either discount their plans or bring out newer, cheaper plans,” Mr Weston said.
He said the arrival of Level Health could be “good news” for insurance customers.
A New Era for Irish Health Insurance?
The new player, 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.
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.
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.
New Insurer Claims to Offer ‘Meaningful Savings’
The new player, 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.
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.
