KUALA LUMPUR (March 25): Prudential Assurance Malaysia Bhd issued a statement on Tuesday to reaffirm its commitment to Bank Negara Malaysia’s (BNM) interim measures that were announced last December to stagger the increase in medical insurance premiums, after several lawmakers demanded an explanation from the insurer about the planned premium hike for its medical health plans next month.

Referring to recent news coverage, which it said might have raised concern among its policyholders, Prudential said they were based on excerpts from a letter to its customer that outlined the average medical inflation rate for one of its medical plans, PRUHealth, due to an increase in the number of policyholders who made a claim and their average claims amount.

"This was shared to help policyholders understand the factors influencing healthcare costs and ensuring adherence to guidelines. Since the implementation of the BNM interim measures, we have been reaching out to policyholders in stages since March 18, 2025 with updated notifications, detailing the measures, with updated premium and insurance charges. The measures include staggering premium adjustments and additional assistance for eligible policyholders," Prudential said.

"Medical cost inflation is a nationwide issue affecting all walks of life. The BNM interim measures is a joint commitment from the insurance and takaful industry to implement these adjustments responsibly and transparently. Our top priority is to ensure that our customers receive the support and clarity they need, and that they understand the options that are available to them with regards to their policy coverage," it added.

On Monday, six PKR lawmakers called on Prudential to clarify its planned premium hike after the notice it sent to policyholders, saying Prudential could be violating BNM's interim measures, which capped premium increases at 10% for most policyholders over the next three years. The lawmakers were Bayan Baru MP Sim Tze Tzin, as well as senators Datuk Dr Mohd Redzuan Othman, Amir Md Ghazali, Abun Sui Anyit, Bob Manolan Mohamed and Datuk Ahmad Azam Hamzah.

In the notice, Prudential reportedly informed policyholders of its planned premium increase, citing a 19.6% rise in average claims from a year ago. It also warned that increasing costs might warrant an annual review of medical plans and insurance charges.

BNM announced the interim measures, agreed to by the insurance and takaful industry, on Dec 20, 2024 to address the burden of rising medical insurance premiums on policyholders. Besides spreading out premium increases over at least three years, with the increases capped at 10% yearly, the measures include pausing certain premium adjustments for individuals aged 60 and above.

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