KUALA LUMPUR: The Life Insurance Association of Malaysia (LIAM) said it is in discussions with Bank Negara Malaysia (BNM) about measures that can be taken to ease the burden on policyholders resulting from the unprecedented rise in claims over the past few years.
In a statement today, the association denied saying there would be "no immediate change" to the recent rate hikes of medical insurance premiums that ranged from 40 per cent to 70 per cent, as reported by local media.
"Over the period of 2021 to 2023, unprecedented cumulative medical claims cost inflation of 56 per cent placed many insurers in a critical position on their medical books of business, having to manage a high ratio of claims over premiums.
"The rising cost of care at private hospitals, as well as the sharp increase in the number of policyholders seeking treatment, have driven up claims and premiums,” it said.
The association added that, during this period, insurers have been proactively engaging with their customers to manage the impacts of repricing while offering a range of options to ensure policy continuity and affordability.
It also noted that the life insurance industry has been actively collaborating with BNM, the Ministry of Health (MOH), and the Association of Private Hospitals Malaysia (APHM) to develop long-term strategies to address the financial impact of rising costs and medical claims. - Bernama
