Most Medical Insurance Premiums Increased By Less Than 10%, Says MOF

Iman Aminuddin

6th August 2025 - 2 min read

Many Malaysians have recently noticed increases in their medical insurance or takaful premiums. The Ministry of Finance (MOF) has shared official data to explain the situation and outline steps being taken to manage rising costs.

Premium Increases Mostly Moderate, Says Finance Ministry

As of 30 April 2025, over 90% of revised Medical and Health Insurance and Takaful (MHIT) policies saw premium hikes of less than 10%, according to MOF data. The ministry also highlighted that more than 200,000 policies benefited from deferred premium adjustments, and over 14,000 lapsed policies were reinstated.

Why Are Premiums Rising?

The government explains that premium increases are mainly driven by medical inflation. This includes a rise in claims following the COVID-19 pandemic, as many delayed medical treatments are now being addressed. Additionally, the overall cost of healthcare is increasing due to factors such as the rise of non-communicable diseases and investments in new medical technology.

MOF acknowledged that these higher costs have made private medical insurance less affordable for some Malaysians, prompting their recent statement to Parliament.

A New Basic Medical Insurance Plan Is In Development

To improve affordability and access, the government is working on a basic MHIT product. Stakeholder consultations are ongoing to finalise the framework. The plan will be voluntary, with the concept expected to be completed by December 2025 and implementation targeted for the end of 2026.

Possible Use Of EPF Akaun Sejahtera For Premium Payments

MOF indicated that once the basic MHIT product launches, contributors may be able to use their Employees Provident Fund (EPF) Account 2 to pay premiums. This option will remain voluntary, allowing individuals to decide whether to use EPF funds or other resources.

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(Source: New Strait Times)

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Anonymous

4 months ago

Even with this 10% increase in annual premium, insurance companies are laughing away. I was subjected to a staggered increased in my premium before the BNM stepped in; and have since been revised to abt a 8% premium increase; but over the next 3 years, this turn out to be more than the staggered increase!

ssenik

4 months ago

Reply to Anonymous

Hi there,

Thanks for sharing your experience. Insurance premium increases can definitely be frustrating, especially when they feel inconsistent or higher than expected. It’s good to hear that Bank Negara Malaysia (BNM) stepped in to help regulate the increases, but we understand it can still be tough to manage costs over time.

Thanks again for your comment!