KUALA LUMPUR – Bank Negara Malaysia (BNM) has announced interim measures to help manage the impact of medical and health insurance and takaful (MHIT) premium adjustments, with insurers and takaful operators (ITOs) to spread out the changes in premiums over a minimum of three years for all policyholders affected by the repricing.
The central bank said this measure will remain in place until the end of 2026. “With this measure, at least 80 per cent of policyholders are expected to experience yearly premium adjustments, due to medical claims inflation, of less than 10 per cent,” it added.
BNM governor Datuk Seri Abdul Rasheed Ghaffour said these interim measures will provide some temporary support to policyholders, but broader health reforms must be expedited with a commitment to achieve clear outcomes in the coming years.
“We need to address the root causes of rising medical and health insurance and takaful premiums which are driven by higher medical costs and utilisation of medical services. The design of MHIT products must also be improved to make them more sustainable and aligned with value-based healthcare that prioritises better health outcomes,” he said in a statement today.
He said the central bank is working closely with the relevant stakeholders including the Ministry of Finance (MOF), Ministry of Health (MOH), private hospitals and ITOs, with all parties having been supportive and committed to working out a long-term sustainable solution to this complex issue.
BNM said another interim measure is for policyholders aged 60 years old and above who are covered under the minimum premium/contribution plan of the MHIT product that they purchased. The measure will require ITOs to temporarily pause premium adjustments for one year from their policy anniversary.
“The interim measures above are not applicable to premium increases that may apply when a policyholder moves to a higher age band. This will be managed separately by the ITOs,” it added.
Policyholders who have surrendered or whose MHIT policies have lapsed in 2024 due to the repricing can reach out to their ITOs to request a reinstatement of their policies based on the adjusted premium under this measure without additional underwriting requirements.
Also, all ITOs will provide appropriate alternative MHIT products at the same or lower premiums for policyholders who do not wish to continue their existing MHIT plans that have been repriced.
“ITOs that do not currently offer appropriate alternative products must make these products available to policyholders by the end of 2025.
“Switching to alternative MHIT products will not require any additional underwriting or involve any switching cost. This, together with other reforms to contain medical cost inflation, will serve to avoid significant future premium adjustments,” it said.
BNM said communications on these measures by ITOs to individual policyholders will take place progressively and policyholders can also contact their respective ITOs from Jan 15, 2025. – December 20, 2025