Insurance Premiums Face Scrutiny As Hike Comes Amid Record Profits By Private Hospitals Insurers

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Insurance crisis: Rising insurance costs in Malaysia have led to policy cancellations and financial difficulties.
PETALING JAYA: Insurance players, Bank Negara Malaysia and the Health Ministry are set to appear before the Parliamentary Special Select Committee (PSSC) for Health tomorrow for a hearing on the issue of rising insurance premiums.
According to the PSSC’s chairman Suhaizan Kaiat, the Life Insurance Association of Malaysia, Malaysian Takaful Association and General Insurance Association of Malaysia have been summoned for the first session.
Officials from the ministry and Bank Negara are slated to appear in the second session on the same day.
“We want an explanation from all parties involved and will propose the best resolution to the government,” the Pulai MP said when contacted.
Suhaizan said the committee will then compile a report based on the hearing.
The hearing will be held in Parliament.
Another PSSC member, Bentong MP Young Syefura Othman, said the committee is also cognisant of the need to hold engagements with private hospitals to investigate the hike in medical costs.
It was earlier reported that medical insurance premiums are expected to rise by between 40% and 70% next year, based on notices sent by insurance providers to policyholders.
The rising cost of medical care in private hospitals was cited as the primary reason for the hike.
On Nov 28, Bank Negara said insurers and takaful operators (ITOs) should review their current repricing strategies to ensure a more reasonable implementation.
The central bank said these include managing increases in premiums or contributions over time by taking into account the impact on policy owners or takaful participants.
In addition, it said ITOs are required to offer viable options for policy owners or takaful participants who are significantly affected by the higher premiums or contributions to continue having insurance or takaful coverage.
Consumers’ Association of Penang senior education officer NV Subbarow proposed that the PSSC recommends setting up a task force to look into issues faced by patients due to high medical bills.
“The (rising) insurance cost has caused Malaysians to run into difficulties. Some have decided not to continue with their policies.
“Private hospitals must show proof to justify the increase. The PSSC must request the reason,” he said.
Subbarow also said if the rise in premium cannot be justified, then patients must be reimbursed the excess payment they were charged.
Independent health advocate Dr Sean Thum felt that the hikes were unreasonable and needed to be revised downwards.
“When a hike comes along with news of record profits from both private hospitals and private insurers, it becomes bad optics.
“There must be some measures of control over the inflation of private hospital charges and insurers.
“Otherwise, many will not be able to pay for higher premiums, resulting in them flooding public service (healthcare), which is already at full capacity,” he said. - Star

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