Cheaper health insurance on the way as VHI cuts prices
VHI is set to cut its prices on a number of health insurance plans.
The move should provide a huge boost to over a million VHI customers and it is possible that the move will provoke a similar response from rival insurance companies, the Irish Independent reports.
In a market that has been experiencing rising prices, the move is highly unusual according to insurance experts.
In the past twelve months both Laya and Irish Life Health has implemented price rises.
The Irish Independent understands that State-owned VHI will cut the price of 26 of its 78 plans, many of which are legacy plans held by older members of VHI.
In a pitch to young families, the insurance company is also reducing child rates, while continuing to offer half-price child coverage on its VHI One Plans.
When asked if this was a price war, Dermot Goode of healthcover.ie told the Irish Independent that it was too soon to tell,
"At the very least it may mean minimal or no increases for hard-pressed consumers over the coming months who have been hit by a barrage of increases in the past 18 months," he said.
In addition Mr Goode agreed that the reduced prices went against a trend of price increases which are sometimes seen in the run up to the peak policy renewal period.
After VHI made profits of €56.4m last year, VHI boss John O’Dwyer promised a price freeze after he was challenged by the Irish Independent.