KUALA LUMPUR: Bank Negara Malaysia (BNM) has required insurers and takaful operators (ITOs) to review their current repricing strategies for more reasonable implementation. The central bank said that included managing increases in premiums or contributions over time by taking into account the impact on policy owners or takaful participants.
According to BERNAMA News Agency, ITOs are required to offer viable options for policy owners or takaful participants who are significantly impacted by the higher premiums or contributions to continue having insurance or takaful coverage. “ITOs must also ensure the options provided are meaningful and provide additional measures to support affected policy owners or takaful participants,” BNM stated in response to the recent public uproar over the repricing of medical and health insurance and takaful (MHIT) products.
BNM mentioned that further details on the available options will be announced by the insurance or takaful industry soon. “Over the years, the cost of healthca
re has risen significantly due to medical cost inflation and increased utilisation of medical services and procedures. Therefore, comprehensive and coordinated reforms to contain medical cost inflation will be critical to preserve continued access to appropriate MHIT protection,” BNM added. It emphasized the need for cooperation among relevant stakeholders, including the ITOs, the Ministry of Health, Association of Private Hospitals Malaysia, health practitioners, consumer groups, and policyholders, to achieve this.
BNM reiterated its commitment to ensuring that the public continues to have access to suitable insurance and takaful products. Local media reported recently that medical insurance premiums are expected to increase by 40-70 percent next year, potentially forcing some policyholders to consider terminating their policies due to the rising cost of monthly premiums.