KUALA LUMPUR: Bank Negara Malaysia has directed insurers and takaful operators (ITOs) to reassess their repricing strategies for medical and health insurance and takaful (MHIT) products to ensure a more reasonable implementation.
In a statement today, the central bank said this includes managing increases in premiums/contributions over time, taking into account the impact on policy owners/takaful participants.
"In addition, ITOs are 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," it added.
Bank Negara noted that further details on the available options will be announced by the insurance/takaful industry soon.
The central bank also said it remains committed to ensuring that the public continues to have access to suitable insurance and takaful products.
It acknowledged the concerns about the repricing of MHIT products by ITOs which has impacted policy owners/takaful participants.
Bank Negara said over the years, the cost of healthcare has risen significantly due to medical cost inflation and increased utilisation of medical services and procedures.
Therefore, it 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 Bank Negara continue to cooperate to achieve this outcome," it said.