Hike In Medical Insurance Premiums Not Finalised Says Anwar

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Many policyholders are considering terminating their medical insurance policies after reports that premiums are expected to increase by 40% to 70% next year.
PETALING JAYA: Prime Minister Anwar Ibrahim says medical insurance premiums for the upcoming year have not been finalised.
Local media reported that medical insurance premiums are expected to increase by 40% to 70% next year, resulting in many policyholders considering terminating their policies.
Speaking to reporters after Friday prayers at Putrajaya, Anwar said Bank Negara Malaysia is still looking into the matter.
“As of now, the process is still being renegotiated,” Utusan Malaysia quoted him as saying.
Yesterday, deputy finance minister Lim Hui Ying said the finance ministry is discussing the proposed increase with several parties.
It was previously reported that BNM called on insurers and takaful operators to review repricing strategies for more “reasonable implementation” after reports of a hike in medical insurance premiums next year.
In response, insurers and takaful operators said the increased medical insurance premiums were “unavoidable” in light of rising claims and medical inflation.
On Nov 28, BNM directed insurers and takaful operators to review their pricing strategies for medical and health insurance to ensure they are more reasonable.
This includes managing premium or contribution increases while considering the impact on policyholders.
In a joint statement on the same day, the Life Insurance Association of Malaysia, Persatuan Insurans Am Malaysia, and the Malaysian Takaful Association said the insurance and takaful industry experienced an “unprecedented” cumulative 56% rise in claims from 2021 to 2023.
They said increased medical insurance premiums are also driven by factors such as the rising costs of medical treatment, advanced healthcare technologies, and increased utilisation of healthcare services, with a growing number of policyholders seeking medical care, including post-pandemic treatments and elective surgeries.
They also cited higher operational costs in private healthcare and the high prevalence of non-communicable diseases like diabetes, which raises the demand for long-term care, as other reasons for the hike in medical insurance premiums. - FMT

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