The head of the State's newest health insurance company has denied it is exclusively targeting younger, more profitable customers at the expense of older ones and claimed everyone will find better value with the company.
Speaking at the launch of GloHealth in Dublin today, chief executive Jim Dowdall said its policies would be particularly attractive to young families but added that it was "making a promise that everyone will get better value".
The company will create 150 jobs within three to four years as the business expands, with 45 of these positions already filled. Its policies are underwritten by Great Lakes Reinsurance, a subsidiary of Munich Re, one of the world's leading reinsurers which has an annual premium income of around €50 billion. Irish Life is to take a 49 per cent stake in the company.
The new company is offering three core plans - Good, Better and Best. A family of two adults and two children can save up to €465 switching from VHI's One+ Plan to GloHealth's Better plan.
While an individual on Aviva's Level 2 Hospital can save €266 when they switch to GloHealth's Best plan. A couple on Laya's Essential Complete Plan will save €401 when they switch to GloHealth's Better plan. With its Better and Best plans, all children are covered for free until they are three.
GloHealth customers will also be able to choose benefit packages depending on their requirements with some examples of benefits included within the eight personalised packages including free travel insurance, a free flu vaccine and free family first aid courses.
"The arrival of GloHealth will definitely be good news to consumers - particularly those who are struggling to keep up premium payment and those who have been forced to cancel their cover due to monetary difficulties," said Stuart Endall of getcover.ie.
He said the company would "simplify the entire health insurance industry for consumers by allowing consumers to choose, what can only be described as tailor made health insurance policies".
However speculation that the new player might spark a price war is premature, according to Patrick Brennan of Irish Health Insurance. "Any speculation at this stage that this will spark a price war is merely that, speculation. There has been no analysis on this," he said although he added that he expected in time to see "a robust reaction by existing insurers to this new offering".
He welcomed the arrival of the new company and said keeping younger people in the system is the most effective way of ensuring affordable premiums for older members. "Take out the younger members and you could see a doubling of premiums, therefore any effort of a new insurer to offer affordable cover for this demographic should in time benefit everyone," he said.
