KUALA LUMPUR: Each health insurance and takaful operators are urged to explain the premium increment to their policyholders.

Sim Tze Tzin (PH-Bayan Baru) in a press conference said that each operator should be responsible for disclosing any information on the pricing of their products.

“We urge, hope and wait for each operator to issue statements to explain their position in this matter.

“We would also request that Bank Negara Malaysia explain the real situation on the purported increment of health premiums as planned by the operators. Will the central bank instruct the operators to study the price hike?” he told reporters at the parliament building here on Wednesday (Dec 4).

Sim added that the hotline he launched to gather grievances from the public regarding the increased health premium had received over 147 complaints across two weeks.

The complaints were received through email, calls and messages on WhatsApp.

“This proves the anger of the rakyat against the abrupt increase in the pricing of insurance premiums,” he added.

Sim shared a complaint he received from an 85-year-old policyholder which was slapped with a 78% hike within a year.

“Her insurance policy has increased annually since 10 years ago. In 2021, she had to pay RM5,615, RM6,065 (2023) and RM10,815 (2024).

“The price skyrockets within a year, with a 78% hike,” he said.

On Tuesday (Dec 3), it was reported that the Life Insurance Association of Malaysia (LIAM) said that it was still in discussions with Bank Negara Malaysia (BNM) about measures to ease the burden on policyholders resulting from the unprecedented rise in claims over the past several years.

It added that throughout 2021 to 2023, unprecedented cumulative medical claims cost inflation of 56% placed many insurers in a critical position on their medical books of business, having to manage a high ratio of claims over premiums.

“The rising cost of care at private hospitals as well as the sharp increase in the number of policyholders seeking treatment have driven up claims and premiums,” said the association on its official website.

Previously, it was reported that medical insurance premiums are expected to rise by between 40% and 70% next year, following notices sent by insurance providers to policyholders citing the rising cost of medical care in private hospitals as the primary reason.

In a joint statement on Nov 28, LIAM, Malaysian Takaful Association, and General Insurance Association of Malaysia said they understand these adjustments may cause concern but will “remain committed to providing transparency and support during this time”.

Bank Negara said in a statement that it requires insurers and takaful operators to review their current repricing strategies to provide a more reasonable adjustment.

The central bank said this includes managing increases in premiums or contributions over time by taking into account the impact on policy owners or takaful participants.

https://www.thestar.com.my/news/nation/2024/12/04/health-insurance-companies-called-to-explain-premium-increment