Boost for competition as Aviva plans new health insurer

Insurance giant Aviva has joined forces with serial entrepreneur Oliver Tattan to launch a new health insurance provider.

The move will be a boost for consumers, but comes at a difficult time for existing players VHI, Laya and Irish Life Health.

VHI made a loss last year, while all three insurers have been forced into a raft of price hikes due to rising claims.

Mr Tattan and former Irish Life Health boss Jim Dowdall, along with Mr Tattan’s associate Stephen Loughman, have formed a new company called Douglasdale.

All three have a track record in founding and running health insurance ventures.

Aviva Insurance and Douglasdale will form a 50/50 joint venture to launch the fourth health insurer in this market.

Aviva has confirmed the launch of the new provider. Its name has not been released, but experts said it would inject much-needed competition into the market.

The new provider has yet to get regulatory approval from the Central Bank and the Health Insurance Authority but is expected to launch later this year.

“Aviva announces that its Irish business is investing into a new start-up health insurance business in the Irish market,” Aviva said in a statement.

“This investment, which is subject to regulatory approvals, will result in Aviva taking a 50pc share in a new private health insurance business established by a group of senior executives with significant experience in both setting up and running health insurance businesses in Ireland.”

It said that subject to approval, the new business would begin selling private health insurance in the second half of 2024.

The new venture was first reported in The Phoenix magazine.

Health insurance expert Dermot Goode, of TotalHealthCover.ie, said more choice was to be welcomed by hard-pressed consumers. He said a new entrant would need to build scale quickly, resulting in competitive pricing and enhanced benefits for all.