Insurance company Aviva has confirmed its investment in a new start-up which plans to offer private health insurance in Ireland.
Subject to the new business receiving regulatory approval, it is planned that it will begin selling private health insurance policies in the second half of 2024.
Aviva, which will hold a 50 per cent share in the company, said the new venture has been established by "a group of senior executives with significant experience in both setting up and running health insurance businesses in Ireland".
Aviva Insurance Ireland's chief executive Declan O'Rourke said the announcement is "great news for Irish consumers as it will provide greater choice and value".
"This investment expands Aviva’s offering in Ireland to General, Life and Health Insurance and further demonstrates Aviva’s commitment to continue to grow in Ireland as a leading financial services provider," he added.
Commenting on the news, insurance expert Dermot Goode, from Totalhealthcover.ie, agreed that more competition in the Irish private health insurance market will benefit consumers.
"There’s nothing like extra competition to drive better value for all consumers and employers," he said.
Mr Goode added: "Any new entrant will need to build scale quickly, which will require both competitive pricing and enhanced benefits.
"This in turn will lead to a reaction from the existing insurers which hopefully will lead to better value for all insured and those considering joining."
Noting that the peak health insurance renewal period is from December to February, he said the projected start date for the new insurer should come in time to be of benefit to the 1.2 million people due for renewal during that timeframe.
"Overall, this is good news but will we need to see the details before we know the extent of the impact on health insurance members," Mr Goode added.
