A majority of people in the State now see private health insurance as a costly necessity rather than a luxury, according to a survey published yesterday.
Some 47 per cent of the population has private health cover, 94 per cent of whom sees it as a necessity. They say it provides them with peace of mind and allows them to skip queues and have access to better levels of healthcare services.
More than half of those without private health insurance also expressed the view that it was a necessity. The main reason they hadn't taken out private cover was because they considered it too expensive.
The survey was conducted by Amárach Consulting for the Health Insurance Authority (HIA), which is the independent regulatory body for private health insurance in the State.
It found most of those with insurance cover were from higher socio-economic backgrounds, but 16 per cent of medical card-holders had also taken out cover. Some 82 per cent of policy-holders were with the VHI, 13 per cent with BUPA and 5 per cent with other schemes operated by the Garda and ESB, for example.
Forty per cent of those with cover found increases in their insurance premiums in recent years were inappropriate and unjustifiable. The average premium paid by families was €768 and by individuals €430.
A massive 92 per cent of those with insurance said they were satisfied or very satisfied with the current range of services offered by their company. However, when asked what benefits they would like to see included in their policy, 58 per cent said they would like dental and optical cover. A further 18 per cent wanted improved GP cover.
Only 6 per cent of those surveyed had switched from one insurance provider to another. Of those who switched, most had transferred from the VHI to BUPA, with half citing cost savings as the main reason for changing. However, 71 per cent said they never considered switching, mainly because they were satisfied with their current provider. On average, there would have to be a 26 per cent price differential between the companies to encourage them to switch, they said.
Some 57 per cent considered the level of competition in the private health insurance market was inadequate.
The survey drew attention to the fact that few policy-holders have a thorough understanding of what their policy covers and only go to the trouble of checking when they make a claim.
The chairman of the HIA, Prof Alastair Wood, expressed concern at this knowledge deficit. He said greater understanding of the market and the straightforward nature of switching between insurers would empower consumers to make educated comparisons between companies and lead to a more competitive market. The survey was conducted among a random sample of 1,001 people aged over 18.