One of the main topics brought forward from the end of 2024 into 2025 is the pending increase in Hospital & Surgical [H&S] (also known as “medical”) insurance premiums of between 40% to 70%. It is not a huge increase; it is a whopping increase by any measure.

For the last few weeks, we the public, have been getting mixed signals and reactions from various stakeholders, including insurance companies.

For those people who have yet to purchase a H&S insurance, you can shop around for what suits you most. If the premiums do increase by such a jump; you are going to accept it as it is, because you want a cover from a particular insurer (insurance company). Your entry point is at the adjusted increased rate.

What is going to seem unfair are for those existing policyholders. Yes, H&S insurance is on a year-to-year renewal.

A H&S insurance policy is typically on an annual renewal basis, meaning that it is valid for 1 year. However, at renewal, insurers will waive the waiting period (anywhere from 30 – 60 days, and any clauses that may be attached to the waiting period). Another plus point is that a person with a health impairment and has been accepted in the policy’s current term of cover; will not be penalised with higher premiums and exclusions.

In most of these H&S policies, there will be a clause included which states that if the company faces an adverse rise in claims cost, it will raise premiums across the board, meaning that no individual is singled out due to claims that he / she made during the policy coverage. Increase in premiums would generally be between 5% – 10%.

For these policyholders, it would be unfair to incur a premium hike of between 40% – 70%. It definitely would put them in a spot.

Some insurance companies have been making rather ambiguous statements about their rate hikes, and how they are looking at an increase of around 10%.

Here again, I reach out to those existing policyowners. On renewal from this year onwards, compare your policy renewal with the one that has just expired. Make sure, that you are getting the same deal, or better than the one you had initially signed up for.

Insurance companies are doing a valid, legal business. They have every right to make what they deem as decent profits.

However, the onus of responsibility in understanding the terms and conditions from the brochure to the proposal form to the policy contract (yes, it is a binding contract between the policyholder and the insurance company) lies with the buyer. Make sure you have an insurance agent who is competent and professional to advise you.

NOTE:

1. Alan Ian Atkinson has had well over 25 years experience in the promoting and selling of H&S policies.
2. This was put together in its simplest form for anyone and everyone to understand. It is a very broad overview.
3. Individual Insurance companies differ very slightly from each other in their terms and conditions. They are all banded together as members in an association (cartel?).
4. Malaysia’s Hospital & Surgical insurance premiums are amongst the cheapest in the region. For Malaysians, they are still considered high.
5. Shout goes out to Jayvine Ramma for his advice on getting a generally good set of microphones for the videos.
6. Shout goes to Andrian Tam for his advice on plain backgrounds when making videos.
7. Long, long way to go from making perfect videos.