All insurance companies in Malaysia must implement measures for premium sharing with policyholders starting from 15 January 2025.
Country’s deputy finance minister Lim Hui Ying has said that individuals who received premium increase notices last year can contact their insurers from 15 January 2025 to request premium sharing and the insurers must make the necessary adjustments.
Ms Hui Ying said the deadline is a directive issued by Bank Negara Malaysia (BNM) and must be adhered to. She said the insurers must cap the annual premium increases for medical insurance at 10%, ensuring the cumulative increase by the end of 2026 does not exceed 30%.
The minister said that within this cap, the insurers are barred from any modifications or alterations in policy terms or reducing the coverage under the policy. She said any new insurance products introduced during this period must remain separate and must not affect the existing policies under premium-sharing measures.
She said the country should have a unified and standardised system for medical services and health insurance claims to ensure transparent and consistent medical fees. She said BNM data highlights significant disparities in medical costs.
The agreement by the insurers to cap the annual increases in medical and takaful health insurance (MHIT) premiums at 10% over a three-year period is expected to benefit at least 80% of policyholders.