28th November 2024 - 2 min read
Bank Negara Malaysia (BNM) has instructed insurers and takaful operators (ITOs) to review their repricing strategies for Medical and Health Insurance and Takaful (MHIT) products in response to public concerns over rising premiums and contributions. The move aims to ease the financial strain on policy owners and takaful participants, while ensuring continued access to essential coverage.
To address these concerns, BNM urged ITOs to implement repricing measures more reasonably, such as phased increases that take affordability for policyholders into account. Additionally, ITOs must provide viable options for those significantly affected by higher premiums, ensuring they can maintain their insurance and takaful coverage. BNM has also required operators to introduce supplementary measures to support policyholders during this transition.
Further details on these options are expected to be announced soon by the insurance and takaful industry, providing clarity and solutions for policyholders seeking continued coverage amid rising costs.
According to BNM, the premium adjustments are driven by rising healthcare costs, with medical cost inflation and increased utilisation of medical services cited as key contributing factors. In light of this, the central bank emphasised the need for comprehensive reforms to address these underlying issues.
“Containing medical cost inflation will be critical to preserve continued access to appropriate MHIT protection. It is imperative that the relevant stakeholders, including ITOs, the Ministry of Health, the Association of Private Hospitals Malaysia, health practitioners, consumer groups, policy owners, takaful participants, and BNM, continue to cooperate to achieve this outcome,” it said.
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.
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