KUALA LUMPUR: All insurance and takaful companies should provide an explanation to policyholders why premiums for health coverage have increased.
Sim Tze Tzin (PH-Bayan Baru) said each operator should disclose all information on their product pricing.
"We urge, hope and wait for each operator to issue statements to explain their position.
"We also request for Bank Negara to explain the real situation on the increase of health premiums as planned by operators. Will Bank Negara instruct operators to study the price hike?" he said in a press conference at the Parliament building here on Wednesday (Dec 4).
Sim also said there had been 147 complaints made to the hotline he launched to gather grievances from the public on increased health insurance premiums.
"This shows the anger of the rakyat over the abrupt increase in prices," he added.
Sim stated the example of an 85-year-old policyholder who was slapped with a 78% hike when her insurance premiums increased from RM6,065 in 2023 to RM10,815 in 2024.
On Tuesday (Dec 3), the Life Insurance Association of Malaysia (LIAM) said that it was still in discussions with Bank Negara about measures to ease the burden on policyholders.
Citing an "unprecedented" rise in claims over the past several years, it said from 2021 to 2023, cumulative medical claims cost inflation of 56% placed many insurers in critical position.
"The rising cost of care at private hospitals as well as the sharp increase in the number of policyholders seeking treatment have driven up claims and premiums," said the association on its official website.
Previously, it was reported that medical insurance premiums are expected to rise by between 40% and 70% in 2025.
In a joint statement on Nov 28, LIAM, Malaysian Takaful Association and General Insurance Association of Malaysia said they understand these adjustments may cause concern but will "remain committed to providing transparency and support during this time".
Bank Negara said in a statement that it requires insurers and takaful operators to review their current repricing strategies to provide a more reasonable adjustment.
This includes managing increases in premiums or contributions over time by taking into account the impact on policy owners or takaful participants.
