The country's largest private health insurer is to increase the cost of its premiums by up to 5%, it has been announced.

According to the VHI, the price increases will vary across plans and range between 1% and 5%, with an average increase of 2%.

The company's director of marketing and business development, Declan Moran, insisted that the VHI ‘remains committed to keeping prices as low as possible'.

He described the price increase as ‘modest' and pointed out that it is the first rise in 20 months.

"It is necessary to cover the rising costs of our customer's claims. More of our customers require access to quality healthcare including access to new and improved medical technologies, new life saving drugs and new treatments as they come available, but these come at a cost," he commented.

He added that the company is committed to ‘managing costs and reducing inefficiencies' in an attempt to keep premiums affordable for customers.

The increase will see two adults and two children on the One Plan Family plan paying just over €105 more per year, while the adult rate on the One Plan will increase from €1,006.25 to €1,038.82.