KUALA LUMPUR: The National Association of Malaysian Life Insurance and Financial Advisors (Namlifa) has strongly urged Bank Negara Malaysia (BNM) and the Finance Ministry (MoF) to order a temporary halt in the medical premium repricing exercises.
Its president Krishnan Appanu suggested that the insurers and takaful operators (ITO) represented by the Life Insurance Association of Malaysia (LIAM) and the Malaysian Takaful Association (MTA) explore the possibility of introducing staggered premium increases with flexible payment plans that ease the burden on consumers.
"At this juncture, I urge all stakeholders —including the insurance associations, takaful operators, healthcare providers, and most importantly, BNM, to collaborate closely to address this issue in a manner that is equitable and comprehensible to the public," he said in a statement today.
The recent announcement by LIAM, MTA, and the General Insurance Association of Malaysia (PIAM) regarding the adjustment of medical insurance premiums has understandably sparked public concern.
Krishnan highlighted that the significant 56 per cent cumulative inflation in medical claims costs between 2021 and 2023, driven by the rising treatment costs, advanced healthcare technologies, and increased healthcare service utilisation, underscores the complexities faced by the industry.
"While premium adjustments may be necessary to sustain the viability of medical insurance plans, their implementation must be handled with sensitivity and transparency," he noted.
He also emphasised the importance of insurance providers and relevant authorities intensifying efforts to educate the public on the reasons for premium adjustments.
"This includes explaining how medical inflation, individual risk ratings, and product features contribute to repricing and the steps being taken to minimise its impact on policyholders," he added.
Krishnan acknowledged that BNM, as the regulatory authority for the insurance and takaful sectors, has introduced the Policy Document on Medical Health Insurance and Takaful to ensure fair practices.
"Mandating co-sharing medical products is expected to improve medical claims efficiency and provide sustainable long-term premiums for consumers.
"Along with that, data sharing amongst ITOs will promote competitive treatment charges from private healthcare providers," he said.
Meanwhile, with the data sharing made available, Namlifa also urged the Ministry of Health and MoF to work closely with BNM to monitor hospital charges, which are currently unregulated.
"I call on BNM to engage with insurers and takaful operators to develop guidelines that balance the need for premium sustainability with affordability for policyholders," he added. -- Bernama