BANK Negara has unveiled measures to help the public with rising insurance premiums, including directing insurance providers to limit premium rises to not more than 10% per annum.
The central bank said there will also be a one-year pause in premiums for policyholders aged 60 years and above.
In a statement, BNM Governor Datuk Seri Abdul Rasheed Ghaffour emphasised the need to address the root causes of rising premiums, driven by higher medical costs and increased utilisation of medical services.
“These interim measures will provide some temporary support to policyholders, but broader health reforms must be expedited,” he said.
In addition, those who have surrendered their policies or lapsed in their payments this year due to repricing of their policies are now allowed to request a reinstatement of their policies based on the new rules.
BNM also said that the government, along with insurance companies and private hospitals, are setting aside RM60 million for insurers and takaful operators (ITOs) to develop medical policies covering basic healthcare needs for those above the age of 60.
Policyholders who choose not to continue with their repriced plans will also have the option to switch to alternative medical and health insurance/takaful (MHIT) products offering the same or lower premiums.
These alternative products, available from ITOs by the end of 2025, will not involve any underwriting or switching costs.
The central bank said it will monitor the progress of these reform efforts and conduct periodic reviews of the interim measures in line with advancements in the broader healthcare landscape.
Policyholders can expect to receive communications from their respective ITOs regarding these changes starting Jan 15, 2025. - December 20, 2024
