The Federation of Malaysian Consumer Association (Fomca) has urged insurers to stop increasing medical insurance premiums amid the coronavirus pandemic. The reason for prompting them to stop increasing premiums is because it will affect the premiums affordability for policymakers.
It is reported that the hospital occupancy had significantly decreased due to the pandemic. With that, insurers will have a lesser payout compared to previous years.
Fomca President Dr Marimuthu Nadason in a statement said “Notices are being sent to policyholders at the time when consumers are still struggling to make ends meet which is very unjust and unfair. Fomca advocates for the deferment of repricing rollout by insurance companies which was initially intended to take effect in 2020. However, due to the severe economic disruption caused by the pandemic, the one-year postponement does not provide enough breathing space for policyholders who remain burdened by economic and employment uncertainties.”
According to the data from Association of Private Hospitals, it appears that private hospitals and clinics had seen a drop of nearly 70 percent. That in turn has led to a healthier loss/claims ratio and improved overall profitability for insurers.
In November, AmMetLife Insurance had introduced a new plan, known as ProtectEase. CriticalEase and AmMetLife Insurance have developed a vision to help Malaysians to obtain health and financial protection during the pandemic, media reports said. It was during the same month that Life Insurance Association of Malaysia announced extension of additional relief measures for policyholders, following the coronavirus pandemic.