KUALA LUMPUR, Dec 4 — The Life Insurance Association of Malaysia (LIAM) has denied that there will be no immediate changes to recent medical and health insurance and takaful premium rate adjustments of 40 to 70 per cent.
In a statement today, LIAM clarified that discussions with Bank Negara Malaysia (BNM) are ongoing to explore measures aimed at easing the burden on policyholders, following an unprecedented rise in claims over the past several years.
The association issued this clarification in response to a local media report that claimed “no immediate changes to the recently reported medical premium hikes.”
“Over the period of 2021 to 2023, unprecedented cumulative medical claims cost inflation of 56 per cent placed many insurers in a critical position on their medical books of business, having to manage a high ratio of claims over premiums.
“The rising cost of care at private hospitals, as well as the sharp increase in the number of policyholders seeking treatment, have driven up claims and premiums,” it said.
The association added that, during this period, insurers have been proactively engaging with their customers to manage the impacts of repricing while offering a range of options to ensure policy continuity and affordability.
It also noted that the life insurance industry has been actively collaborating with BNM, the Health Ministry and the Association of Private Hospitals Malaysia (APHM) to develop long-term strategies to address the financial impact of rising costs and medical claims.
— Bernama
