Malaysia’s central bank, Bank Negara Malaysia (BNM), has urged insurance companies to be more considerate when adjusting medical and health insurance premiums.
This comes after public outcry over the sharp increase in insurance costs.
BNM wants insurance companies to change the way they raise premiums, instead of raising prices all at once, insurers should do so gradually.
They should also give customers good and practical options to cope with the changes.
Details of the new options will be shared soon.
The situation has drawn the attention of lawmakers such as Wong Shu Qi and Sim Tze Tzin, who have raised concerns about the financial burden on Malaysians.
Insurance companies, on the other hand, have attributed the increases to rising claims and medical inflation.
They have also started introducing co-payment plans where policyholders share the costs.
Private hospitals say their profit margins are modest, stating that they are facing increasing operating expenses.
Meanwhile, BNM has stressed the importance of reforms to address the root causes of rising medical costs.
The bank assured the public of its commitment to ensuring insurance is affordable and accessible for all.