Profiteering fears as Malaysians face punishing hike in health insurance

The rare intervention by the bank followed local media reports of Malaysians cancelling medical insurance policies after being unable to afford steep monthly premiums.

In a statement on Thursday, Bank Negara Malaysia (BNM) acknowledged the public’s concern and has instructed insurance operators to provide a remedy to the situation.

“[They] must also ensure the options provided are meaningful and provide additional measures to support affected policy owners,” the central bank said.

In July, BNM directed insurance companies to start pushing for policies that require patients to pay a percentage of their medical costs in advance before insurance kicks in as part of its effort to balance access to insurance coverage in the face of the sharp spike in cost of healthcare.

“[This] aims to help contain medical cost inflation in Malaysia by controlling the over-consumption of health services,” BNM said.