FPAM warned that terminating an insurance or takaful policy might seem like a short-term solution, but it could have long-term consequences, especially in times of unexpected medical emergencies.

“Policyholders should consider evaluating their policies to identify any redundant or non-essential coverage that can be adjusted. This may help reduce the premium amount while retaining essential benefits,” FPAM president Alvin Tan said in a statement.

He urged policyholders to speak with their insurance or takaful operators (ITOs) to explore options in restructuring their policies.

“Options like increasing the deductible amount or opting for a co-payment structure can make premiums more affordable,” he added.

Tan also called on the public to compare insurance plans from ITOs in order to choose cost-effective options without compromising critical coverage.

“Also check if your employer offers medical insurance as part of your employment benefits. Supplement this coverage with a private plan tailored to your specific needs,” he said.

He also urged regulators, healthcare providers and ITOs to work together towards holistic solutions that would address rising medical inflation.

It was earlier reported that medical insurance premiums were expected to rise by between 40% and 70% next year, based on notices sent by insurance providers to policyholders. Insurers attributed the hike to rising healthcare costs at private hospitals.

Finance minister II Amir Hamzah Azizan said the central bank would ensure that the increase in insurance premiums was implemented in an orderly and gradual manner, along with other assistance for certain groups.

Several PKR MPs and a senator have since urged Bank Negara Malaysia (BNM) to cap insurance premium hikes at 10%.

BNM is expected to announce details of its interim measures to address the rise in medical insurance premiums this week.