Bayan Baru MP Sim Tze Tzin said that during the closed door briefing, the central bank would explain the process involved in its review of medical insurance premium payments.

“We want to understand the criteria involved in approving premium increases. This will be explained at the briefing tomorrow,” Sim told a press conference at Parliament today.

He also urged the health ministry and BNM to establish a task force to investigate the matter and hold proceedings and public hearings.

“We are not looking to find fault with anyone or restrict profits in the private health sector.

“Our aim is for the government to find a solution (to the issues plaguing) the private health sector’s ecosystem and funding for the sector,” he said.

Previously, the finance ministry had announced it was in discussions with the parties involved in the proposed increase in medical insurance premiums.

On Nov 28, BNM ordered all insurance companies and takaful operators to reassess their repricing strategies for medical and health insurance and takaful products to make them more reasonable.

The bank said this included managing increases in premiums/contributions over time, taking into account the impact on policy owners/takaful participants.

On the same day, the Life Insurance Association of Malaysia, Persatuan Insurans Am Malaysia and the Malaysian Takaful Association said in a joint statement the increase in medical insurance premiums was driven by the rising cost of medical treatment, among others.

They cited higher operational costs in private healthcare and the high prevalence of non-communicable diseases like diabetes as other reasons for the hike in medical insurance premiums.