Finance Minister Datuk Seri Amir Hamzah Azizan has assured that insurance premium increases will be kept below 10% annually for 80% of policyholders.
This comes amid concerns from policyholders about rising insurance claims against them stemming from rising healthcare costs.
Starting January 15, Bank Negara Malaysia (BNM) has introduced measures to reduce rising insurance costs.
Premium increases will be spread over a three-year period until 2026 while senior citizens aged 60 and above with basic plans will get a one-year delay before any increases take effect.
Between 2018 and 2023, life insurance and takaful operators earned RM4.4 billion in average annual profits.
To address rising healthcare costs, the government is pushing for transparent drug pricing and the adoption of a Diagnostic Related Group (DRG) payment system.
Discussions are also underway with private hospitals for a long-term solution to control medical inflation.
