The National Consumer Complaints Centre (NCCC) has recently been receiving a substantial number of complaints from consumers concerning increases in their medical insurance premiums. At this time of the pandemic, it is cruel that insurance companies would choose this time to increase their premiums. What is even extremely disappointing is that Bank Negara Malaysia as the regulator for the insurance industry has chosen to turn a blind eye to the plight of the suffering consumers.

While FOMCA has been advocating for a moratorium for insurance premiums during this difficult time; not only was a moratorium not  enforced; insurance companies decided instead that they would increase their premiums, fully confident that the regulator would protect the interests of the industry instead of protecting the welfare of consumers.

Further, to ascertain how serious the problem of medical insurance premium increases was, FOMCA undertook an online survey requesting that consumers provide feedback on their current and new insurance premiums. 

Within 2 weeks, 495 consumers responded.

Of the 495 consumers, 285 or 58% reported that their ringgit increase was from RM300 to RM 1,000. 10% (51) reported increases of RM 1,000 to RM 2,000. 6% (31) reported increases of RM 2,000 to RM 5,000. 1% reported increases of RM 5,000 to RM 6,500.

In the context of the current pandemic, when many consumers have lost their jobs or had their incomes substantially decreased, with weak or non-existent regulatory oversight, insurance companies are using this situation to substantially increase insurance premiums to an already suffering citizens. Faced with substantial increasing costs of living where food and basic essentials prices have increased substantially, consumers are suffering to meet the basic needs of themselves and their families. Now is certainly not the time to make exorbitant profits by increasing the financial burden on the rakyat.

This is the time to show concern for the suffering rakyat by deferring premiums at least until consumers get back financially on their feet. This is best done by deferring premiums until the economy recovers, to give some space for the consumers to take care of themselves and their families.

If insurance companies are unwilling to defer premiums as it will affect their profits and enhancing value to their shareholders, their first and often only priority, the least that the industry can do is not use this pandemic period, to seek exorbitant profits by increasing premiums. The brief survey clearly shows that this is what the insurance companies have done.

FOMCA calls on the industry, during this pandemic, in the face of consumers suffering due to job loss and income loss, to defer premium increases to help consumers face this terrible health and economic crises.

FOMCA calls on Bank Negara Malaysia to act firmly to protect consumers and enhance their well-being by enforcing a moratorium on insurance premium for all consumers until there is greater job security and income stability.

Or at the very least, Bank Negara Malaysia must stop the Insurance Industry from increasing premiums during the pandemic.