PETALING JAYA: The upward repricing of healthcare insurance premiums is justified based on a combination of a spike in policy claims, substantial investment in medical technology and equipment in the face of a weaker ringgit as well as an industry underwriting loss of RM5bil in 2023 that makes the business unsustainable over the longer-term, analysts say.
Affin Hwang Investment Bank Research (Affin Hwang Research) said in a report that the repricing has to take into account medical cost inflation and cannot be based solely on the profitability of life insurers, where underwriting losses for the industry, although narrower in the first-half of 2024 at RM1bil, was RM5bil in 2023 excluding investment-linked funds.
