KUALA LUMPUR 28 November 2024 – The Life Insurance Association of Malaysia (LIAM), the Malaysian Takaful Association (MTA) and Persatuan Insurans Am Malaysia (PIAM) acknowledge the concerns raised by policyholders regarding the recent increase in medical premiums. We understand that these adjustments may cause concern, and we are committed to providing transparency and support during this time.

Rising Claims and Medical Inflation

Over the period of 2021 to 2023, the insurance and takaful industry has experienced an unprecedented cumulative medical claims cost inflation rate of 56%.   This surge, driven by various factors such as the rising costs of medical treatments, advanced healthcare technologies, and increased utilisation of healthcare services, has made premium repricing an unavoidable measure. Beyond inflation, the repricing quantum are also affected by factors such as individual risk rating, risk pooling, product benefits and features as well as expected claims payout.

Although insurers and takaful operators have different repricing cycles, they typically review and adjust premiums every three years to ensure the sustainability of medical insurance plans. The accumulated impact of claims inflation has resulted in upward premium adjustments.

 

Key Factors Driving Medical Inflation

Several factors contribute to the rising premiums:

  • Rising Costs of Medical Equipment and Treatments: The use of advanced technologies and innovative treatments improves healthcare outcomes but also raises operational costs.
  • Increased Utilisation of Healthcare Services: A growing number of policyholders are seeking medical care, including post-pandemic treatments and elective surgeries.
  • Higher Operational Costs in Private Healthcare: Escalating costs in private hospitals inevitably affect their pricing structures.
  • High Prevalence of Non-Communicable Diseases (NCDs) like diabetes and obesity raises demand for long-term care.
  • Aging Population leads to higher demand for medical care due to increased illnesses.

Industry Support for Cost Containment Initiatives

The industry welcomes the recent announcement by the Association of Private Hospitals Malaysia (APHM) on establishing a cost containment unit to manage healthcare costs. This initiative seeks to ensure healthcare services remain affordable while maintaining high standards of care.

The industry is also supportive of the Health Minister’s call for a value-based healthcare delivery system. By focusing on delivering better health outcomes at sustainable costs, this approach can help balance affordability and quality in the long term.

In addition, the introduction of co-payment options in September this year offers a long term solution to assist policyholders to manage their policy.  Co-payment options aim to reduce premiums by sharing medical costs with policyholders, encouraging more mindful healthcare usage in the long term.

 

Dedicated support for policyholders

The industry continues to engage with Bank Negara Malaysia (BNM) to manage healthcare costs. Understanding the challenges faced by policyholders, insurers and takaful operators are committed to providing comprehensive support. In this respect, the industry is committed to, among others:

  • Stagger repricing adjustments to manage impact to customers;
  • Establish a dedicated hotline for each company and relief program to ensure ease of access to policyholders:
    • Offering flexible premium/contribution payment plans to affected policyholders;
    • Offering options for different protection plans at comparatively lower or the same premium/contribution; and
  • Implement effective redress mechanisms, including dedicated communication channels for affected customers.

 

Further details on the measures will be announced soon.

We remain concerned that some policyholders will struggle to maintain their coverage, particularly senior citizens, and continues to work with stakeholders, like APHM and MOH to find solutions to bring claims inflation under control. We remain dedicated to ensuring that policyholders have access to the best possible protection and healthcare services while addressing their concerns.

For further information, policyholders are encouraged to contact their respective insurers or takaful operators. Details will be posted in the Association’s website

LIAM: www.liam.org.my

PIAM: https://piam.org.my/

MTA: https://takaful4all.org/ms/

# END #

Issued by:  LIAM, MTA AND PIAM

 

KUALA LUMPUR, 28 November 2024 – Persatuan Insurans Hayat Malaysia (LIAM), Persatuan Takaful Malaysia (MTA) dan Persatuan Insurans Am Malaysia (PIAM) mengakui kebimbangan yang dibangkitkan oleh pemegang polisi berhubung kenaikan premium perubatan baru-baru ini. Kami memahami bahawa pelarasan ini mungkin menimbulkan kebimbangan dan kami komited untuk menyediakan ketelusan dan sokongan pada masa ini.

Kenaikan Tuntutan dan Inflasi PerubatanSepanjang tempoh 2021 hingga 2023, industri insurans dan takaful telah mengalami kadar inflasi kos tuntutan perubatan kumulatif yang tidak pernah berlaku sebelum ini, iaitu sebanyak 56%. Lonjakan ini didorong oleh pelbagai faktor seperti kenaikan kos rawatan perubatan, teknologi kesihatan yang semakin maju, dan peningkatan penggunaan perkhidmatan kesihatan, yang menjadikan penetapan semula harga premium/caruman sebagai langkah yang tidak dapat dielakkan. Selain daripada inflasi, jumlah penetapan semula harga juga dipengaruhi oleh faktor-faktor seperti penilaian risiko individu, pemupukan risiko, manfaat dan ciri produk serta jangkaan pembayaran tuntutan.

Walaupun syarikat insurans dan pengendali takaful mempunyai kitaran penetapan harga semula yang berbeza, mereka biasanya menyemak dan melaraskan premium/caruman setiap tiga tahun untuk memastikan kemampanan pelan insurans/takaful perubatan. Kesan terkumpul inflasi tuntutan telah menyebabkan pelarasan premium/caruman meningkat.

Faktor Utama Memacu Inflasi Perubatan

Beberapa faktor menyumbang kepada kenaikan premium/caruman:

  • Peningkatan Kos Peralatan dan Rawatan Perubatan: Penggunaan teknologi canggih dan rawatan inovatif meningkatkan hasil penjagaan kesihatan tetapi juga meningkatkan kos operasi.
  • Peningkatan Penggunaan Perkhidmatan Penjagaan Kesihatan: Semakin ramai pemegang polisi mendapatkan rawatan perubatan, termasuk rawatan selepas pandemik dan pembedahan elektif.
  • Kos Operasi yang Lebih Tinggi dalam Penjagaan Kesihatan Swasta: Peningkatan kos di hospital swasta tidak dapat tidak menjejaskan struktur harga mereka.
  • Kos Operasi yang Lebih Tinggi di Hospital Swasta: Kenaikan kos di hospital swasta secara tidak langsung mempengaruhi struktur harga mereka.
  • Kekerapan Penyakit Tidak Berjangkit (NCD) seperti diabetes dan obesiti: Meningkatkan permintaan untuk rawatan jangka panjang.
  • Penduduk yang Menua: Menyebabkan permintaan yang lebih tinggi untuk penjagaan perubatan akibat peningkatan penyakit.

Sokongan Industri untuk Inisiatif Pengekalan Kos

Industri mengalu-alukan pengumuman baru-baru ini oleh Persatuan Hospital Swasta Malaysia (APHM) mengenai penubuhan unit pengekalan kos untuk menguruskan kos penjagaan kesihatan. Inisiatif ini bertujuan untuk memastikan perkhidmatan penjagaan kesihatan kekal mampu milik serta mengekalkan standard penjagaan yang tinggi.

Industri juga menyokong seruan Menteri Kesihatan untuk sistem Penjagaan Kesihatan Berasaskan Nilai. Dengan menumpukan pada memberikan hasil kesihatan yang lebih baik pada kos yang mampan, pendekatan ini boleh membantu mengimbangi kemampuan dan kualiti dalam jangka panjang.

Di samping itu, pengenalan pilihan pembayaran bersama pada September tahun ini menawarkan penyelesaian jangka panjang untuk membantu pemegang polisi/sijil mengurus polisi/sijil mereka. Pilihan pembayaran bersama bertujuan untuk mengurangkan premium/caruman dengan berkongsi kos perubatan dengan pemegang polisi/sijil, menggalakkan penggunaan penjagaan kesihatan yang lebih berhemat pada jangka panjang.

Sokongan khusus untuk pemegang polisi/sijil

Industri terus berhubung dengan Bank Negara Malaysia (BNM) untuk menguruskan kos penjagaan kesihatan. Memahami cabaran yang dihadapi oleh pemegang polisi/sijil, pengendali insurans dan takaful komited untuk memberikan sokongan yang menyeluruh. Dalam hal ini, komitmen industri untuk, antara lain:

  • Pelarasan harga semula secara berperingkat untuk mengurus impak kepada pelanggan;
  • Wujudkan talian hotline khusus untuk setiap syarikat dan program bantuan untuk memastikan kemudahan akses kepada pemegang polisi:
    • Menawarkan pelan pembayaran premium/caruman yang fleksibel kepada pemegang polisi yang terjejas;
    • Menawarkan pilihan untuk pelan perlindungan yang berbeza pada premium/caruman yang lebih rendah atau sama; dan
  • Melaksanakan mekanisme penyelesaian yang berkesan, termasuk saluran komunikasi khusus untuk pelanggan yang terjejas.

Butiran lanjut mengenai langkah-langkah itu akan diumumkan tidak lama lagi.

Kami tetap prihatin bahawa sesetengah pemegang polisi/sijil akan menghadapi kesukaran untuk mengekalkan perlindungan mereka, terutamanya warga emas, dan akan terus bekerjasama dengan pihak berkepentingan seperti APHM dan Kementerian Kesihatan Malaysia (KKM) untuk mencari penyelesaian bagi mengawal inflasi tuntutan. Kami tetap komited untuk memastikan bahawa pemegang polisi mendapat akses kepada perlindungan dan perkhidmatan kesihatan terbaik, sambil menangani kebimbangan mereka.

Untuk maklumat lanjut, pemegang polisi/sijil digalakkan untuk menghubungi penanggung insurans atau pengendali takaful masing-masing. Butiran lanjut akan disiarkan dalam alamat laman web:

LIAM: www.liam.org.my

MTA: https://takaful4all.org/ms/

PIAM https://piam.org.my/

 

# TAMAT #

Dikeluarkan oleh:  LIAM, MTA AND PIAM

 

LIAM:

Puan Norizan Hassan
Head of Corporate Communications
Life Insurance Association of Malaysia
Level 6, AICB Building
No. 10, Jalan Dato’ Onn
50480 Kuala Lumpur
Tel: 603-2691 6168 / 6628 / 8068
Email: liaminfo@liam.org.my
Website: www.liam.org.my
Facebook: LIAM – Life Insurance Association of Malaysia
Instagram: @liamalaysia

MTA:

Puan Siti Nor Kamariah Ishak
Head, Corporate Communications
18th Floor, Main Block
Menara Takaful Malaysia
Jalan Sultan Sulaiman
50000 Kuala Lumpur.
Tel: 0113-747 5361 / 018-355 1427
Fax: +603-2031 8170
Email: mtasecretariat@malaysiantakaful.com.my

PIAM:

Ms. Susanna G. Simon
Manager, Consumer Education, PR & Corporate Communications
Persatuan Insurans Am Malaysia (PIAM)
Wisma PIAM,
150, Jalan Tun Sambanthan,
50470 Kuala Lumpur,
Wilayah Persekutuan.
Tel: 03-2274 7399
Fax: 03-2274 5910
Email: susanna.simon@piam.org.my

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ABOUT LIFE INSURANCE ASSOCIATION MALAYSIA (LIAM)

Formed in 1974, the Life Insurance Association of Malaysia (LIAM) is a trade association registered under the Societies Act 1966. LIAM has a total of 16 members, of which 14 are life insurance companies and 2 life reinsurance companies. LIAM’s objectives are to promote a progressive life insurance industry; to enhance public understanding and appreciation for life insurance; to upgrade the image and professionalism of the life insurance industry and to support the regulatory authorities in developing a strong industry. Visit www.liam.org.my for details.

ABOUT MALAYSIAN TAKAFUL ASSOCIATION (MTA)

Malaysian Takaful Association (MTA) was established on November 2002 under the Societies Act 1966. It is a trade association representing all 18 licensed Takaful and Retakaful operators in the country. The objectives and the powers of MTA are to promote the interests of its members and to inculcate the implementation of self-regulation within the Takaful industry. More information on MTA can be obtained from its website: www.takaful4all.org

ABOUT PERSATUAN INSURANS AM MALAYSIA (PIAM)

PIAM is the national trade association of all licensed direct and reinsurance companies for general insurance in Malaysia. Currently, PIAM has 23 member companies. More information on PIAM can be obtained from its website: www.piam.org.my.