Aviva is to increase its health insurance premiums by an average of 4% from next month.

It is the latest in a string of increases after Laya insurance announced an average hike of 10.8% at the weekend, while the VHI raised its policies by an average of 6% last month.

Aviva says it regrets the increase but that it is necessary to cover escalating claims costs and the government health insurance levy.

From next month the levy is going up to cover the cost of the government risk equalisation scheme which spreads the cost of covering older people among all insurers.

'Cost of claims is increasing'

Aviva says the cost of claims paid by it increased by 29% in 2012 compared to 2011.

It adds that claims costs for some treatments have seen significant increases; such as radiotherapy and chemotherapy which have increased by 37.5%, while the cost of non-surgical admissions claims have increased by 48.3%.

Aviva Managing Director Alison Burns said "We are acutely aware that many customers are struggling to meet the cost of their health insurance".

"That is why we have minimised increases on all plans and there are no increases on many of our entry level plans".

"Our priority is to continue to offer a wide choice of affordable products which give our customers and their families fast access to quality treatment and peace of mind" she added.