In a notice, Prudential Malaysia said the increasing costs may warrant an annual review of medical plans and insurance charges to ensure policyholders are well protected.

Prudential CEO Lim Eng Seong said in the notice that 74 out of 1,000 policyholders made claims under the PRUHealth plan compared with 62 a year ago.

He said each claim had seen an average increase of 3.9%, or from RM14,113 to RM14,664.

“Average medical inflation based on bill amount for PRUHealth for the past three years is still rising at 5.1% per annum. As a result, the actual cost of your medical plan has increased by 23.6%

“The actual cost of your medical plan is directly linked to the number of policyowners who have made claims and their average medical claims amount,” he said in the notice.

According to an insurance manager, the increase is tied to the policyholders’ claims record, with those with no claims apparently facing the lowest increase at 4%.

Lim said healthcare costs have been consistently rising with increased demand for healthcare services, and better medical treatment with advancement in technology.

Prudential has also suggested alternative options to policyholders to reduce their financial burden by downgrading their current benefits or changing their premium payment frequency.