BNM Instructs Insurance Companies to Reassess Repricing Strategies for Fairer Premium Implementation
Bank Negara Malaysia (BNM) has instructed insurance companies to reassess their repricing strategies to ensure fairer implementation for policyholders due to concerns over rising premiums for medical insurance.
Rising Healthcare Costs Drive Premium Increases
The country’s healthcare costs have increased substantially, driven by medical inflation and greater use of medical services and procedures.
BNM Acknowledges Public Concerns
BNM, also the country’s financial regulator, said it acknowledges public concerns over price adjustments for health-related policies by insurance companies and takaful operators, which offer Sharia-compliant Islamic insurance.
Critical Reforms Needed to Contain Medical Cost Inflation
“Therefore, comprehensive and coordinated reforms to contain medical cost inflation will be critical to preserve continued access to appropriate MHIT (medical and health insurance and takaful) protection,” BNM said in a statement.
Insurers Must Manage Premium Increases Carefully
Insurers and takaful operators must carefully manage the increase in premiums over time, considering their impact on policyholders, while also offering viable alternatives to those significantly affected by higher costs to ensure continued coverage, BNM said.
Conclusion
In conclusion, BNM’s instruction to insurance companies to reassess their repricing strategies is aimed at ensuring fairer premium implementation for policyholders. The regulator acknowledges public concerns over rising premiums and emphasizes the need for comprehensive reforms to contain medical cost inflation.
Frequently Asked Questions
Q: Why is BNM instructing insurance companies to reassess their repricing strategies?
A: BNM is instructing insurance companies to reassess their repricing strategies to ensure fairer premium implementation for policyholders due to concerns over rising premiums for medical insurance.
Q: What is driving the increase in healthcare costs?
A: The country’s healthcare costs have increased substantially, driven by medical inflation and greater use of medical services and procedures.
Q: How will BNM ensure continued access to medical and health insurance protection?
A: BNM will work towards comprehensive and coordinated reforms to contain medical cost inflation and preserve continued access to appropriate MHIT protection.
