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๐‘ฐ๐’๐’”๐’–๐’“๐’‚๐’๐’„๐’† ๐‘ช๐’๐’Ž๐’‘๐’‚๐’๐’Š๐’†๐’” ๐‘จ๐’๐’๐’๐’–๐’๐’„๐’† ๐‘ฏ๐’Š๐’ˆ๐’‰๐’†๐’“ ๐‘ท๐’“๐’†๐’Ž๐’Š๐’–๐’Ž๐’” ๐Ÿ˜ฑ๐Ÿ˜ฑ

Updated: Jan 9, 2021

Malaysians will be paying higher medical insurance premiums in 2020, as major insurance companies cite a spike in healthcare costs, FMT (Free Malaysia Today) has learnt.

Insurance companies and agents told FMT that the move was inevitable in view of high inflation in medical and hospitalisation costs in recent years.

They also said the increase in premium, said to be up to 30%, was due to technological advancement in treatments as well as an increase in patients.

Medical Technology

โ€œWith the number expecting to rise further and outpace the general inflation rate, we have to make the necessary adjustments to your medical planโ€™s premiums so that they can keep up with healthcare inflation,โ€ said AIA Berhad in a notice sent to its customers.

When contacted by FMT, an insurance agent with AIA confirmed the increase, while another from Zurich Malaysia said the company had started to inform clients of the revised rates.

โ€œWe have received calls from our clients asking why they are required to pay more for their medical plans,โ€ he said.

When contacted, Zurich Malaysia rebuffed an FMT request for details on the price hikes. In 2019, a survey on medical trends by global insurance consultants Willis Towers Watson found that Malaysia ranked among the highest in South East Asia in terms of expected increases in medical costs.

The General Insurance Association of Malaysia (PIAM) had reported that total health expenditure in 2018 was RM60.147 billion, of which 52% was funded by the government and the rest paid by private households (35%), private insurance (7%), corporations (4%) and other agencies (2%).

Malaysia ranked among the highest in South East Asia in terms of expected increases in medical costs.

โ€œIf healthcare costs are not contained, the increase in premiums for medical and health insurance will be inevitable,โ€ PIAM had said. โ€œIf medical insurance is no longer affordable, it will drive more patients to seek treatment at government hospitals.โ€

Although medical insurance can come in all shapes and sizes, most policies these days are comprehensive, with policy holders given medical cards for admission to hospitals. The latest premium increase is on top of the regular revisions based on the age factor. With a typical standalone policy, a policy holder can expect the premiums to go up, often according to five-year age bands.

An AIA spokesman said all medical plans in Malaysia were priced by actuaries but insurance companies would also factor into the price an inflation rate of 6% to 8%. ๐Ÿ˜ฑ๐Ÿ˜ฑ

He said the expected increase in claims for 2019 was 13%. As a result, he added, insurance companies had had to revise their premium costs upwards.

Increase of Medical Claims

He advised policy holders to exercise wisdom as consumers.

โ€œEven if your hospital bill is covered by your insurance policy, the cost of each treatment will count towards your yearly and lifetime limits,โ€ he said. โ€œIn the end, lower claims will result in lower premiums for all policy holders.โ€

(Thanks to FMT)


Insurance Companies are doing business, not charity. The more protections or higher limits they provide, the larger the amount of premium will be charged to the policyholders.

It is strongly recommended to revise your insurance policies, not only on the benefits & features, but also the fine print and sustainability with your insurance agents, preferably a Financial Advisor due to their wide knowledge & unbiased advice.

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