KUALA LUMPUR: Bank Negara passes measures to help public with rising insurance premiums, including directing insurance providers to limit premium rises to not more than 10% per annum.
The central bank said there will also be a one-year pause in premium for policyholders aged 60 years and above.
In addition, those who have surrendered their policies or lapsed in their payments this year due to repricing of their policies are now allowed to request for a reinstatement of their policies based on the new rules.
Insurance companies have also been instructed to make available cheaper insurance plans to policy holders who do not wish to continue their re-priced policies.
BNM also said that the government, along with insurance companies and private hospitals, are setting aside RM60mil for insurers and takaful operators (ITOs) to develop medical policies covering basic health care needs for those above the age of 60.
Bank Negara Malaysia Governor Dato’ Seri Abdul Rasheed Ghaffour said: “We need to address the root causes of rising medical and health insurance and takaful premiums which are driven by higher medical costs and utilisation of medical services.”
He said the design of medical and health insurance/takaful (MHIT) products must also be improved to make them more sustainable and aligned with value-based healthcare that prioritises better health outcomes.
“This is a complex challenge that requires the concerted action of all stakeholders across the healthcare ecosystem. These interim measures that we are announcing today will provide some temporary support to policyholders, but broader health reforms must be expedited with a commitment to achieve clear outcomes in the coming years.
“We are working closely with relevant stakeholders including the Ministry of Finance (MOF), Ministry of Health (MOH), private hospitals and ITOs. All parties have been supportive and committed to work out a long-term sustainable solution to this complex issue,” he said in a statement.
