Bank Negara Malaysia has replied to the concern raised by a lawmaker who wanted the Central Bank to take action on the exorbitant health plans fees being charged by insurance operators.
In a statement, the regulator said it acknowledged the concerns about the repricing of medical and health insurance and takaful (MHIT) products by insurers and takaful operators that have impacted policy owners/takaful participants.
BNM said it had requested ITOs to review their current repricing strategies for more reasonable implementation of such
repricing. This includes managing increases in premiums/contributions over time, taking into account the impact on policy owners/takaful participants. In addition, ITOs will be also required to offer viable options for policy owners/takaful participants who are significantly impacted by the higher premiums/contributions to continue having insurance/takaful coverage. ITOs must also ensure the options provided are meaningful and provide additional measures to support affected policy owners/takaful
participants.
The regulator added that over the years, the cost of healthcare has risen significantly due to medical cost inflation and increased utilisation of medical services and procedures. BNM also said comprehensive and coordinated reforms to contain medical cost inflation will be critical to preserve continued access to appropriate MHIT protection.
It is imperative that the relevant stakeholders (including ITOs, Ministry of Health, Association of Private Hospitals Malaysia, health practitioners, consumer groups, policy owners/takaful participants) and BNM continue to cooperate to achieve this outcome.
