KUALA LUMPUR: The government has warned that extending the three-year interim measures to manage rising medical insurance premiums could threaten the sustainability of health insurance products.
Deputy Finance Minister Lim Hui Ying said the interim measures introduced by Bank Negara Malaysia, in collaboration with the insurance industry, were designed only as a temporary solution to assist policyholders affected by medical inflation.
“Continuing these measures beyond three years would affect the sustainability of health insurance products.
“The challenge of medical inflation is complex and requires a whole-of-nation approach,” she said in the Dewan Rakyat today.
She was responding to a supplementary question by Roslan Hashim (PN–Kulim Bandar Baharu) on whether the government planned to extend the measures and whether there would be initiatives to address medical inflation and health insurance sustainability.
The interim measures implemented by BNM saw a 10 per cent cap on premium increases for most policyholders and those who cancelled or lapsed their policies in 2024 due to premium hikes could reinstate them at no cost.
Lim added that as part of the RESET strategy, efforts are underway to develop a new basic product expected to be launched in early 2027, offering more sustainable and affordable value-based protection options.
She said BNM will continue to monitor the implementation of these interim measures and take firm action against insurers or takaful operators who fail to comply.
The interim measures implemented by BNM saw a 10 per cent cap on premium increases for most policyholders.
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