Insurance premiums could rise by as much as 16% if enough people cancel their private health cover during the COVID-19 outbreak.

Some of the country’s main insurance companies are expected to announce their response to the outbreak later today.

Under a deal aimed at increasing the number of intensive care beds in response to the pandemic, the country’s private hospitals are currently operating as pubic facilities.

Speaking yesterday, the Health Minister Simon Harris said the companies may announce a rebate on insurance premiums now that private patients are receiving the same care as those in the public system.

Dermot Goode, from TotalCover.ie said large-scale cancellations cancelations could lead to big increases for those who hang on to their insurance cover.

“If we see thousands of people cancelling their cover; if they are predominantly younger members; that will mean a lower or smaller base over which to spread claims, so it will lead to increases undoubtedly,” he said.

“We are expecting increases anyway of anything from maybe 7% to 8% each year.

“Those increases could be double that if we saw a lot of people begin forced to cancel their private health cover.”

Companies including Irish Life, Laya and VHI are expected to be involved in this afternoon’s announcement.

Mr Goode said it is likely to focus on two main areas.

“One is some level of rebate and the second thing is some concession for people who have no choice but to reduce their cover down,” he said.

The announcement is due this afternoon.