TLDR: Declan Bolger, CEO of Irish Life, has defended recent health insurance price hikes, attributing them to rising claim costs and medical inflation. As the company posts significant profits, Bolger also advocates for new personal investment accounts, urging consumers to reconsider their savings strategies amidst inflation concerns.
In a recent defence of health insurance price hikes, Declan Bolger, CEO of Irish Life, stated that the increases are necessary due to rising claim costs, which he argues are typical in a low-margin business. The health insurance sector, like other healthcare providers, has seen prices rise twice this year alone—first on January 1 and again on April 1. This has left many customers questioning the accessibility of healthcare as they grapple with increasing premiums.
Irish Life reported impressive financial results, marking an 84% jump in profits to €31.1 million for the 2025 financial year. Revenue from insurance climbed from €594 million in 2024 to €655 million, while costs also escalated, reflecting the broader challenges within the sector. Bolger explained that improved efficiencies in private hospitals result in better treatments for patients—an upside that unfortunately feeds into higher claim costs, ultimately impacting consumer premiums. He pointed out that these evolving treatment costs, compounded by medical inflation, significantly drive up expenses for insurers.
When pressed about the possibility of further price hikes, Bolger stated, “It’s very hard to call at this stage,” emphasising the need to monitor claim levels closely. The uncertainty only adds to frustrations for consumers already feeling the squeeze from rising living costs.
In what could be seen as a silver lining, Bolger expressed strong support for the introduction of personal investment accounts by the government. He argued that many Irish people are simply sitting on savings that are losing value to inflation. These investment accounts could offer an attractive alternative, particularly as they’re designed to be accessible and simple, with low entry requirements and a straightforward tax structure. Bolger highlighted that investing could significantly enhance individuals’ financial well-being, an enticing prospect in today’s uncertain economic climate.
Let’s face it, though—while the notion of investing sounds good on paper, convincing the average Irish consumer to shift focus from saving to investing can be a tough sell. Many have been conditioned to believe that putting money in the bank is the safest route. However, as Bolger pointed out, “By leaving your money on account in real terms, you are losing money.” The age-old Irish aversion to risk might need a reboot, as the reality is that inflation isn’t taking a holiday, and neither should our savings strategies.
In an interesting twist, it might surprise you to know that Ireland has one of the highest savings rates in Europe. Still, the question remains: how to transition from saving to savvy investing without breaking the bank? If Bolger has his way, those personal investment accounts may just provide the nudge many need to rethink their financial futures.
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