Bagan MP Lim Guan Eng questioned the legality of issuing such notifications after BNM governor Abdul Rasheed Ghaffour told MPs during a Dec 10 briefing that no approval had been granted for the hike.

“Instead, BNM will only decide on the 40-70% hike in medical insurance premiums by the end of this month,” he said in a Facebook post.

Lim said the insurers’ claims of having prior approval from BNM contradicted the central bank’s official denial.

“Life insurance companies should therefore show proof that they have indeed obtained such approval from BNM or do the right thing by withdrawing the notification for a 40% to 70% hike in medical insurance premiums next year.”

It was earlier reported that medical insurance premiums were expected to rise by between 40% and 70% next year, based on notices sent by insurance providers to policyholders.

Insurers attributed the hike to rising healthcare costs at private hospitals.

Despite BNM ordering ITOs to review current repricing strategies, policyholders have taken to social media to share images of premium hike notifications they received.

One policyholder, @Seanthum, posted a picture of the letter on X, which explained that advances in medical technology have driven up the cost of diagnostics and treatments, leading to higher insurance premiums.

BNM has pledged to find an interim solution, while Prime Minister Anwar Ibrahim assured that the central bank and the health ministry would work together to prevent steep hikes in medical insurance premiums.