Health insurance premium rates are predicted to continue to increase this year, Bisnis.com said.
Throughout last year, insurance companies were reported to have increased premium rates in line with the medical inflation rate which touched 10.1%.
Indonesian General Insurance Association (AAUI) executive director Cipto Hartono said the trend of premium adjustments is expected to persist this year, driven primarily by sustained high medical inflation.
"This adjustment is important to maintain operational sustainability and claim payment capabilities amid rising health service costs," Mr Hartono told Bisnis.com.
He also noted that most general insurance companies under the AAUI had adjusted their health insurance premiums last year. He explained that the extent of the premium increases varied across companies, depending on their individual portfolios and claims histories.
Bisnis.com noted that premium adjustments are based on several key factors, including national medical inflation trends, prior claims experience or loss ratios, rising hospital and medication costs, policyholder benefit utilisation, and changes in coverage- such as inpatient and outpatient benefits, as well as additional riders.
The Financial Services Authority (OJK) pointed that several insurance companies adjusted health insurance premium prices amid medical inflation.
OJK has also asked insurance companies to create a medical advisory board which will provide expert input on the patterns of medical and drug services issued by health facilities.