We could see more companies offering cut-price life insurance policies. The second biggest healthcare provider in the market is launching a 'no-frills' product, which can be arranged online without the need for a medical examination.

Laya customers could avail of the policy for a monthly payment of around €10.

The move by Laya comes after plans for a 'pay as you go' style of health insurance policy from GloHealth in August.

It comes as the latest figures show 41,000 people dropped their health insurance in the year to the end of June.

The Health Insurance Authority said just over two million people now have private insurance around the country, down from the peak of nearly 2.3 million at the end of 2008.

Insurance expert at totalcover.ie, Dermot Goode, told the Pat Kenny Show here on Newstalk that Laya is trying to come out on top in a tough market.