BANK Negara Malaysia has directed insurers and takaful operators (ITOs) to reassess their repricing strategies for medical and health insurance and takaful (MHIT) products to ensure a more reasonable implementation.
In a statement, the central bank said this includes managing increases in premiums or contributions over time, considering the impact on policy owners or takaful participants.
“ITOs are required to offer viable options for policy owners or takaful participants who are significantly impacted by the higher premiums or contributions to (allow them to) continue having insurance or takaful coverage,” said BNM.
It also said that ITOs must ensure the options provided are meaningful and provide additional measures to support affected policy owners or takaful participants.
BNM added that it remains committed to ensuring that the public continues to have access to suitable insurance and takaful products.
It added that the insurance or takaful industry will announce further details on the available options soon.
The central bank acknowledged the concerns about the repricing of MHIT products by ITOs which has impacted policy owners/takaful participants.
It was earlier reported that medical insurance premiums are expected to rise by 40 - 70 per cent next year, with some policyholders choosing to terminate their policies as they are unable to bear the escalating cost of the monthly fees.
In their statement, BNM noted that the cost of healthcare has risen significantly over the years due to medical cost inflation and the increased utilisation of medical services and procedures.
“Therefore, comprehensive and coordinated reforms to contain medical cost inflation will be critical to preserve continued access to appropriate medical and health insurance and takaful protection,” it said.
BNM also called on the relevant stakeholders such as ITOs, the health ministry, the Association of Private Hospitals Malaysia (APHM), consumer groups, policy owners and takaful participants to cooperate to achieve this outcome.
Yesterday, the Malaysian Medical Association (MMA) said it was concerned that the significant rise in health insurance premiums could lead to greater reliance on the already overburdened public healthcare system.
MMA President Dr Kalwinder Singh Khaira warned that medical policyholders who are unable to afford higher premiums will have no choice but to be forced to turn to government hospitals.
He said that though adjustments to insurance premiums may be necessary to account for rising healthcare costs, the increases must remain reasonable and affordable. - November 29, 2024
