Bank Negara Malaysia calls for fair insurance pricing as medical costs soar

BANK Negara Malaysia (BNM) on Thursday (Nov 28) instructed insurance companies to reassess their repricing strategies to ensure fairer implementation for policyholders due to concerns over rising premiums for medical insurance.

The country’s healthcare costs have increased substantially, driven by medical inflation and greater use of medical services and procedures.

BNM, also the country’s financial regulator, said it acknowledges public concerns over price adjustments for health-related policies by insurance companies and takaful operators, which offer Sharia-compliant Islamic insurance.

“Therefore, comprehensive and coordinated reforms to contain medical cost inflation will be critical to preserve continued access to appropriate MHIT (medical and health insurance and takaful) protection,” BNM said in a statement.

Insurers and takaful operators must carefully manage the increase in premiums over time, considering their impact on policyholders, while also offering viable alternatives to those significantly affected by higher costs to ensure continued coverage, BNM said. REUTERS

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