PETALING JAYA: Increases in medical insurance premium costs are unavoidable because of several factors including rising costs, increased claims, and greater utilisation of healthcare services, say industry associations.
In a joint statement issued Thursday (Nov 28), the Life Insurance Association of Malaysia (LIAM), Malaysian Takaful Association (MTA) and General Insurance Association of Malaysia (PIAM) said individual risk ratings, risk pooling, as well as benefits and features of certain insurance packages, were also factors, in addition to inflation.
"We understand that these adjustments may cause concern and we are committed to providing transparency and support during this time," they said.
According to the statement, the insurance and takaful industry experienced an unprecedented cumulative medical claims cost increase of 56% from 2021 to last year.
"The surge, driven by various factors such as the rising cost of medical treatments, advanced healthcare technologies and increased utilisation of healthcare services, has made premium repricing an unavoidable measure.
"We welcome the recent announcement by the Association of Private Hospitals Malaysia on establishing a cost containment unit to manage healthcare costs, which will ensure services remain affordable while maintaining high standards of care," it read.
The associations noted that the introduction of co-payment options in September offers a long-term solution to help policyholders manage their policies.
"Co-payment aims to reduce premiums by sharing medical costs with policyholders, encouraging more mindful healthcare usage in the long term," they added.
