PM Anwar: Bank Negara and Health Ministry to Implement Measures to Control Rising Insurance Premiums

Samuel Chua

10th December 2024 - 2 min read

Prime Minister Datuk Seri Anwar Ibrahim has announced that Bank Negara Malaysia (BNM) and the Ministry of Health (MoH) will implement measures to control rising insurance premiums.

Speaking in the Dewan Rakyat during the Prime Minister’s Question Time, Anwar acknowledged the issue and emphasised the need for control to avoid burdening the public.

“We understand there are some hikes in insurance premiums, but reasonable reasons were given for it. However, there must be control. Based on the latest information from BNM and the Ministry of Health, they will decide on a control mechanism so that the hike is not too drastic. This is to avoid burdening patients and leading to rising inflation,” he said.

Anwar also assured that the government, including the Treasury, BNM, and MoH, is committed to addressing the problem. “They will come up with a strict guideline so that medical and health insurance or takaful operators take certain issues into consideration,” he added.

The statement came in response to Suhaizan Kaiat (PN-Pulai), who raised concerns about insurance premium hikes of 40-70% and their impact on medical inflation.

To address the broader issue, Anwar suggested potential amendments to existing laws and the introduction of the Diagnosis-Related Groups (DRGs) model to help control costs. He reiterated the government’s stance against drastic cost hikes and assured that alternative solutions, including referral to government hospitals, would be available for patients unable to afford private treatment.

Previously, BNM issued a directive in response to growing public concern over the affordability of Medical and Health Insurance and Takaful (MHIT) products. The central bank has instructed insurers and takaful operators to adopt more reasonable repricing strategies, including phased premium increases that take affordability into account.

(Source: The Star)

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Samuel Chua

Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.