BNM URGES INSURERS, TAKAFUL OPERATORS TO REVIEW REPRICING STRATEGIES FOR MORE REASONABLE IMPLEMENTATION

KUALA LUMPUR, Nov 28 (Bernama) -- Bank Negara Malaysia (BNM) has required insurers and takaful operators (ITOs) to review their current repricing strategies for more reasonable implementation. 

The central bank said that included managing increases in premiums or contributions over time by taking into account the impact on policy owners or takaful participants. 

In addition, it said, ITOs are required to offer viable options for policy owners/takaful participants who are significantly impacted by the higher premiums or contributions to continue having insurance or takaful coverage. 

“ITOs must also ensure the options provided are meaningful and provide additional measures to support affected policy owners or takaful participants,” BNM said in a statement today in response to the recent public uproar over the repricing of medical and health insurance and takaful (MHIT) products.

BNM said further details on the available options will be announced by the insurance or takaful industry soon.

“Over the years, the cost of healthcare has risen significantly due to medical cost inflation and increased utilisation of medical services and procedures.

“Therefore, comprehensive and coordinated reforms to contain medical cost inflation will be critical to preserve continued access to appropriate MHIT protection," it said, adding that relevant stakeholders, including the ITOs, the Ministry of Health, Association of Private Hospitals Malaysia, health practitioners, consumer groups and policyholders, must cooperate with BNM to achieve this.

“BNM remains committed to ensuring that the public continues to have access to suitable insurance and takaful products,” it said.

Local media reported recently that medical insurance premiums are expected to hike by 40-70 per cent next year, leaving some policyholders no choice but to consider terminating their policies due to the rising cost of monthly premiums.

-- BERNAMA