Health insurance costs have already gone up “significantly” in the past few years and are forecast to keep rising. 

Despite this, many in the insurance industry believe vast numbers of people are paying far more than they need to. 

On Lunchtime Live, Head of Health & General Insurance at Cornmarket Dermot Wells predicted costs will continue to increase in the years ahead. 

 “If you’re sitting on the same plan, your premium has gone up the last three years somewhere in the region of 30% and 75% - depending on the plan that you’re on,” he explained. 

“The bad news is, there’s more rate increases to come.”

Mr Wells continued that many people refuse to switch plans, even if a comparable option is significantly cheaper. 

“People are afraid,” he said. 

“It’s this loss aversion; they think they’re going to lose something if they switch. 

“It’s amazing because even looking at the last three years, 89% of people have renewed with the same insurer. 

“65 to 68% are renewing on the same plan - despite those significant increases.” 

A health insurance claim form. Picture by: Alamy.com. 

Ultimately, Mr Wells said this means that many people paying “hundreds, if not thousands more, than we need too”. 

“50% of people are sitting on what we call a legacy plan,” he said. 

“That’s a plan that seven, eight, nine, 10 years old - nothing wrong with them, great cover. 

“It’s just very, very overpriced.” 

Old plans will often include coverage for “things that they’re not going to use”.

Main image: A doctor talks with a young patient. Picture by: Alamy.com