Shortfall will hit health insurance premiums next year, says insurer

Premiums will rise at least €2.50 a month next year

Health insurance companies have been hit by a €400m shortfall and will have to pass this on to their clients in next year’s premiums, the director of small insurer DSW said on Friday.

Chris Oomen says the shortfall, due to lower than expected contributions from employers and national government, will add €30 a year to the average premium.

Insurance companies are funded via premiums from clients, premiums from employers who pay a contribution on behalf of their staff, and by the government.

The shortfall means that insurers reserves ‘and options to keep premiums low’ have been reduced, Oomen said.

DSW is usually the first insurance company to announce its premiums for the following year and aims to do this by the end of September.

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