KUALA LUMPUR, Dec 20 — Bank Negara Malaysia (BNM) has unveiled interim measures to help policyholders cope with premium revisions of their medical and health insurance/takaful (MHIT) products, as healthcare costs in Malaysia continue to surge.
The measures, announced today in collaboration with the insurance and takaful industry, come as Malaysia’s medical cost inflation hits 15 per cent in 2024, exceeding both global and Asia Pacific averages of 10 per cent.
In a statement, BNM Governor Datuk Seri Abdul Rasheed Ghaffour emphasised the need to address 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.
Under the new measures, insurers and takaful operators (ITOs) will spread premium changes due to medical claims inflation over at least three years for affected policyholders until end-2026.
This is expected to result in yearly premium adjustments of less than 10 per cent for at least 80 per cent of policyholders.
For policyholders aged 60 and above with minimum plan coverage, premium adjustments due to medical claims inflation will be paused for one year from their policy anniversary.
However, premium increases due to age band changes will be managed separately by ITOs.
The central bank also announced that policyholders who surrendered or whose policies lapsed in 2024 due to repricing can request reinstatement based on adjusted premiums without additional underwriting requirements.
Additionally, ITOs must provide alternative MHIT products at the same or lower premiums for policyholders who wish to switch from their repriced plans.
Companies that don’t currently offer such alternatives must make them available by end-2025, with no additional underwriting or switching costs.
