Health Insurance: Most Don’t Switch Despite Rising Premiums & Dissatisfaction

Seven in ten Irish health insurance policyholders have never switched providers, according to new research published today by the Health Insurance Authority (HIA). The findings, drawn from an IPSOS survey conducted last year, reveal a remarkably static market, with 82% of consumers failing to shop around for better deals when their policies reach up for renewal.

The study indicates that Irish consumers remain with the same health insurance plan for an average of 20 years. Satisfaction with existing coverage was the primary reason cited for remaining loyal, followed by a widespread belief that potential savings from switching would be minimal. The HIA data shows that only 4% of customers switched providers last year, while a further 15% altered their plans with their current insurer.

This lack of movement comes despite significant increases in health insurance premiums and the ongoing cost-of-living crisis, the HIA noted. Last year, average premiums rose from €1,827 to €1,902, with some individuals experiencing considerably larger increases. Nearly half of those surveyed (46%) believe these recent premium hikes are unjustified – the highest level of dissatisfaction recorded in a decade.

The research also reveals a diminishing threshold for potential savings required to incentivize a switch. Consumers now typically require a cost reduction of around 20% to consider changing plans, down from 22% in 2023, and significantly lower than the 30% demanded in both 2021 and 2019.

While the number of adults with private health insurance in Ireland has seen a slight increase to 46% of the population, the study also highlights a growing trend of policy cancellation. Almost one in five individuals who currently lack health insurance previously held a policy but chose to cancel it – the highest lapse rate in over a decade. Cost was consistently identified as the primary driver for both foregoing coverage and cancelling existing policies.

In response to these findings, the HIA has launched a new, free health insurance comparison tool, intended to provide consumers with a transparent and accessible means of evaluating available options. HIA Chairperson Patricia Byron urged consumers to utilize the tool, stating, “We would strongly encourage consumers to shop around each year when their plan comes up for renewal, and our new comparison tool provides a trusted and accessible starting point.”

The IPSOS HIA Consumer Survey is conducted biennially, providing a periodic assessment of consumer behavior and sentiment within the Irish health insurance market.