Health insurance company VHI has announced price hikes averaging 7 per cent after the number of claims rose 20 per cent last year.

The move by the State’s largest health insurance provider is set to leave some families worse off by around €300 a year.

The price increase, the third in less than a year by the company, will kick in for anyone who renews their health insurance with VHI after March 1st.

The company said the widely anticipated increase was “necessary to meet the healthcare needs of members as claims volumes have risen by more than 20 per cent in 2023 and inflation has had a significant impact on the cost of delivering healthcare”.

In a statement VHI said its members accessed significantly more healthcare services than in previous years over the course of 2023.

“The rapid return to full activity in hospitals post-Covid combined with the impact of pent-up demand for services deferred during Covid has contributed to the escalation in claims volumes and costs,” it said.

“In addition, advances in drugs, procedures and other medical innovations and technologies, supporting enhanced healthcare outcomes, have also impacted on the cost of providing care to members.”

The managing director of VHI Healthcare, Aaron Keogh, said the demand from policyholders in recent months had been “unprecedented”.

He said he was “conscious of the financial pressures facing many of our members and are committed to delivering value by giving them access to high quality healthcare at the lowest possible prices.”

The move comes just weeks after Irish Life announced a price increase averaging 4.8 per cent.