Insurance industry defends premium hikes amid soaring medical inflation
The Life Insurance Association of Malaysia is defending recent premium hikes, citing a 16.1% annual medical inflation rate that has caused portfolios to lose money. Industry executives testified before a parliamentary committee to clarify that the majority of premium income is used to cover rising healthcare claims.
Why it matters
Rising medical costs and insurance premiums are a significant concern for public healthcare accessibility and household financial stability.
Share Life Insurance Association of Malaysia CEO Mark O'Dell says medical inflation averaged 16.1% annually between 2021 and 2023. LIAM CEO Mark O’Dell said the industry’s medical insurance portfolios had been losing money for the past three years as claims costs continued to rise. (LIAM pic) PETALING JAYA : Medical inflation averaging 16.1% a year is “scary”, says Life Insurance Association of Malaysia (LIAM) CEO Mark O’Dell, who told the Public Accounts Committee that rising healthcare costs were putting increasing pressure on insurers and policyholders alike. Appearing before the PAC during its inquiry last year into rising health insurance premiums and private hospital charges, O’Dell said industry estimates showed medical inflation averaged 16.1% between 2021 and 2023.
The article presents the industry's defense alongside the context of public concern and parliamentary inquiry, maintaining a neutral reporting stance.
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