KUALA LUMPUR: Insurers and takaful operators (ITOs) have committed to staggering repricing adjustments and offering flexible premium payment plans for medical insurance, the Dewan Rakyat was told today.
Deputy Finance Minister Lim Hui Ying said ITOs would ensure each company had a dedicated hotline to offer flexible contributions, a range of service plans, and improving resolution mechanisms for policyholders.
"In addition, the ITOs are required to provide suitable solutions for policyholders significantly affected by the premium hikes, ensuring they retain coverage, whether through takaful or insurance. Further details will be announced soon," she said in response to a question from Khoo Poay Tiong (Pakatan Harapan-Kota Melaka).
Khoo inquired about the steps taken by the government to address the issue of medical cost inflation, which led to ITOs' drastic increase in premium rates.
Lim said the government acknowledged the concerns regarding the proposed increase of medical insurance and takaful premiums by insurers, as it impacts policyholders and takaful participants.
On Nov 28, Bank Negara Malaysia instructed ITOs to review their pricing strategies for medical and health insurance (MHIT) to ensure they were more reasonable.
This includes managing premium or contribution increases while considering the impact on takaful policyholders.
Meanwhile, to the initial question from Datuk Mumtaz Md Nawi (Perikatan Nasional-Tumpat), Lim said the government was open to the suggestion that users of MHIT should be able to switch their operators without having to undergo another waiting period, similar to the mobile number portability process.
Lim, however, said there were some constraints, considering that the two services are different.
"Insurance and takaful products are different from mobile phone numbers, as they involve long-term risk accumulation and strict consumer behaviour requirements.
"The waiting period is intended to prevent fraud or abuse, specifically to avoid newly identified policyholders with pre-existing medical conditions taking advantage of insurance coverage without contributing to the risk pool first.
"This would harm claims costs and premium contributions, ultimately affecting the affordability for other policyholders and the sustainability of the product," she said.