The recent price hike by Laya Healthcare, the second one this year, has shattered hopes of cost reductions for households following the planned takeover by French insurance giant Axa. Laya has announced a “price review” that will be effective from October 1, 2023, resulting in an average increase of 3% or €42 per year in gross premiums. Families may have to pay €300 or more to maintain the same level of coverage, according to Dermot Goode of TotalHealthCover.ie. This increase comes at a time when households are already facing inflationary pressures from various fronts.
Dónal Clancy, the managing director at Laya Healthcare, acknowledged the financial pressures faced by members and mentioned their efforts to minimize the impact of the premium increase. Laya, which currently has 690,000 customers and a 28% market share in the Irish health insurance market, increased its premium rates by an average of 4.4% in April.
In May, AIG announced a possible sale of Laya following a review of its health insurance offering. Axa later confirmed its intention to acquire Laya Healthcare for €650 million. The takeover deal, although not yet closed, had raised hopes for increased competition and lower prices in the health insurance market. However, Laya justified the price increase by citing higher costs, including increased medical claims and rising staffing and energy expenses.
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