The drastic raise of insurance premium by up to 70% given the roughly 2.5% inflation rate has prompted the government to table the issue in next week’s parliamentary session, said Bayan Baru member of parliament (MP) Sim Tze Tzin.
According to Sim, members of parliament (MPs) are generally concerned that both the inflation watch and the assurance sector are under the supervision of Bank Negara Malaysia (BNM), therefore the disparity is alarming.
He spoke to reporters in Penang on Sunday according to local media, against the backdrop of the recent repricing of medical insurance due to more than 50% rise in medical claims from 2021 to 2023.
Some policyholders have received notices from their insurance companies, citing rising cost of healthcare at private hospitals as the main reason for the surge in premium charges, reported says.com on Nov 27.
It is also reported that local insurers have received a directive from BNM related to flexible premium payment plans.
The MP noted that BNM will hold talks with insurance providers and Finance Minister II Datuk Seri Amir Hamzah Azizan will arrange for a representative from BNM to brief the parliament on the matter next Tuesday.
The insurance industry, government agencies and healthcare providers are expected to collaborate on sustainable solutions to balance accelerated medical cost and premium affordability.
Socially, the uncontrollable surge of medical insurance premium could negatively impact the safety net for the wider community as the high charges may render the insurance coverage impractical.
