Health insurer Level Health launches promising simplicity

A new health insurer is launching in Ireland today offering simplified policy options, lower prices and wider access to health services, in a move that is expected to boost competition in the market.

Level Health is backed by insurer Aviva and is led by a number of experienced industry veterans.

The company will use the promise of simplicity to attract customers, offering just four plans in a market where there are nearly 350 policy options across existing insurers.

"The launch of Level Health marks a pivotal moment for a broken Irish health insurance market," claimed Jim Dowdall, CEO of Level Health.

"For too long, customers have been overwhelmed by confusing plans, limited options, and a lack of real alternatives."

"Level Health is the cure. We're not just entering the market – we're reshaping it, bringing clarity, simplicity, and genuine competition."

The firm claims to have agreements with all public, private and high-tech hospitals as well as access to more diagnostic, urgent care and emergency care centres than any other health insurer here.

It will also offer instant digital access at any time to doctors and health care professionals and allow customers to make a face-to-face appointment if they'd prefer.

The insurer is also offering the added sweetener of free multi-trip world-wide travel insurance, including winter sports, for the term of a policy.

It says children under the age of three will be covered free on all plans and overall a family of four who switch to it from a comparable Laya, VHI or Irish Life Health plan can expect to save an average of €500.

Customers who move to Level Health from another insurer with a comparable level of cover will not have to re-serve waiting periods.

The new firm is a 50:50 joint venture between Aviva and its founders and senior executives.

In total €20m is being invested in the business.

The company has been co-founded by former VHI chief executive, Oliver Tattan.

Mr Tattan is an experienced entrepreneur and investor in the insurance and IT sectors, having previously founded VIVAS Health in 2004 and GloHealth in 2012.

VIVAS Health was later purchased by Hibernian Group in 2008 and became Aviva Health after new owner Aviva rebranded it.

However, Aviva later sold it to Irish Life in 2016, the same year as Irish Life also took full ownership of GloHealth, which it had previously bought a substantial share of.

The two businesses were merged to become what is now Irish Life Health.

Also involved in founding Level Health are Mr Dowdall, a former Aviva and Irish Life Health boss, health entrepreneur Stephen Loughman, and Ruth Bailey, also a co-founder of GloHealth and Vigo Health.

The new business will bring welcome competition to a market dominated by VHI, alongside Laya and Irish Life Health.

Brian Lee, CEO of the Health Insurance Authority, said it welcomed the entrance of a new player in the market as it would be good for competition and consumers.

The HIA recently said the sheer number of policies on offer can leave consumers feeling overwhelmed.

It has called for all those in the market, including insurers and policymakers, to work towards the simplification and streamlining of the market.

"We still recognise that the market is complex and we are working with the market and looking at how we can support consumers better ourselves," he said.

He said the issue was not so much the number of policies available in the market but the structure of the market, adding that policies could perhaps be grouped across different levels.

Health insurance premiums have risen on average 7% in the last six months and HIA research shows that most people have never switched policies.

"It is really important that people shop around before they do renew their policy," Mr Lee said.

Dermot Goode of Total Health Cover, a Lockton company, said the offering from Level Health looks simple and not complicated, which he added is good for the consumer.

He said the new entrant would have to be aggressive on pricing and the analysis he has done so far looks "very attractive", with savings of €100-200 for a family on the lower plans, up to €450-600 on the higher plans.

Mr Goode added that the benefits look good also.

"All in all, I have to say, it looks very interesting and I think consumers, when you look at what is going on in the market, with massive (price) increases across all three, benefits being reduced, plans being retired, I think this is really welcome news," he said.

"I think consumers are going to be very interested in this."

He predicted the existing providers would be very busy dealing with queries as a result of the launch and he expects a reaction from them.

"If they see a gap or a risk, they are going to launch competing plans," he added.

"So this is competition, this is what the market badly needs."

He said it couldn’t happen at a better time, with 1.5m people due to get their renewal notices, which he said would show increases from 8% up to 25%.