KUALA LUMPUR – Opposition MPs have renewed demands for government intervention to ‘reprimand’ Bank Negara Malaysia (BNM) over rising insurance premiums, which they claim are placing an undue burden on the public.
Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal argued that there is no justification for companies to increase premiums, given their substantial profits.
“If insurance costs rise, the cost of living rises, and people at the bottom are under pressure. Many middle-class people take out insurance for themselves and their families.
“I urge the Prime Minister to reprimand Bank Negara; do not allow insurance companies to increase premiums by 40% to 70% because they (insurance companies) are making substantial profits at the moment,” he said at a press conference in Parliament earlier today.
Wan Fayhsal warned that unchecked premium hikes could lead to policy cancellations as many would struggle to afford the increased costs.
“This is not good for the people. The profits made by insurance companies, for example, Hong Leong Financial Group, are not losing money; in fact, the group’s profits are increasing. No insurance company is losing money at the moment.
“The same goes for payments at private hospitals; KPJ Healthcare made a profit of RM1 billion,” he said.
Media reports recently indicated that insurance premiums are expected to rise by 40% to 70% next year, citing notices sent to consumers. The surge has been attributed to escalating medical costs at private hospitals.
The increase is said to be due to the rising cost of medical treatment at private hospitals.
Following this, Bayan Baru MP Sim Tze Tzin urged Bank Negara to investigate and review insurance companies that have issued notices of premium increases of 40% to 70% next year.
He said BNM should not wash its hands of the matter by claiming it is a “business decision” by the companies.
Today, the Life Insurance Association of Malaysia (Liam) confirmed that the announced increase in medical insurance premiums for next year will remain.
However, its CEO, Mark O’Dell, told Business Times that insurance companies have agreed to implement gradual price adjustments in the future. – December 3, 2024
