Kota Kinabalu: The sharp rise in medical insurance premiums is beginning to affect not only the industry but also the financial resilience of consumers, said National Association of Malaysian Life Insurance Fieldforce and Advisers (Namlifa) Sabah Chairman Wong Fui Foh.
He said while medical insurance remains an essential financial safety net, recent repricing exercises have significantly reduced the buying power of many policyholders, particularly retirees and those with existing health conditions.
“For many retirees, the higher premiums have become unaffordable, forcing them to surrender their insurance policies,” he said during the association’s visit to Gleneagles Hospital, here, Tuesday.
While such decision may provide immediate financial relief, Wong warned it would create wider implications for the healthcare system.
“As rising premiums force more policyholders to drop coverage, the burden increasingly falls on the public healthcare system,” he said.
Although the need for medical protection remains, escalating premiums mean that many Malaysians can no longer afford to maintain the level of coverage they once had.
The situation is even more challenging for policyholders with pre-existing medical conditions.
“They cannot afford to surrender their policies, as they may no longer qualify for new coverage,” he said, which is why many feel compelled to continue paying despite steep premium prices, placing a significant financial burden on them.
Wong said insurance advisers have an important responsibility to help clients understand long-term consequences before making the decision to cancel their coverage.
He said medical inflation, higher healthcare costs, advances in medical technology and broader economic factors have all contributed to the increase in insurance premiums in recent years.
As treatment costs continue to rise, consumers remain aware that a serious illness without insurance could result in substantial financial hardship.
He also highlighted Namlifa’s long-standing partnership with Gleneagles Hospital, as the collaboration allows advisers to better understand hospital services and specialist care so they can provide informed recommendations when clients require treatment.
Looking ahead, Wong believes stronger cooperation between insurers, healthcare providers and the Government will be essential in addressing the affordability challenge.
Meanwhile, Gleneagles Hospital Kota Kinabalu Chief Operating Officer (COO) Kevin Chia said the hospital welcomes its collaboration with Namlifa to improve public awareness of healthcare services and help insurance advisors better guide their clients.
“We are always open to our valued business partners, agencies and the public because we want more people to know about our services,” he said.
He noted that insurance advisers play an important role in guiding clients to appropriate healthcare services, particularly during medical emergencies when patients may be uncertain where to seek treatment.
The collaboration also allowed Gleneagles to showcase its latest robotic-assisted surgical systems — da Vinci and VELYS, highlighting their role in delivering more precise and efficient patient care.
Kevin said the partnership reflects a shared commitment between Gleneagles and Namlifa to improve access to quality healthcare through stronger industry collaboration and better-informed healthcare advice.
