Insurance is getting more expensive, salaries are not increasing, the people are getting squeezed even more!
Prudential Malaysia is now under fire after it abruptly increased medical premiums last Sunday, sparking anger from the people and MPs.
Until when will the people have to pay the price for this mistake?
Although BNM has set a limit of premium increases of only 10% over a three-year period, Prudential still drastically increased rates.
Bayan Baru MP Sim Tze Tzin and five other senators immediately demanded a clear answer, warning that Prudential's move had violated regulations.
They insisted that Prudential should immediately provide an explanation on the matter in a joint statement.
However, Prudential defended the increase on the grounds that insurance claims had increased by 19.6%.
Prudential CEO Lim Eng Seong revealed that 74 out of 1,000 policyholders had made claims under the PRUHealth plan – compared to 62 a year ago.
The company also signaled that annual premium reviews may be conducted if medical costs continue to rise.
Policyholders are now stuck with either paying more or cutting benefits.
If BNM remains silent, is this a sign that insurance companies can do as they please?
