In its 2025 annual report, Liam said the overall claims payouts – including death, disability, medical, and bonuses – increased by 3.4% to RM17.4 billion from RM16.8 billion in 2024.

Disability benefits, though making up just 0.9% of the total payouts, recorded the largest increase at 77.4%, climbing from RM89 million in 2024 to RM157.9 million last year.

Medical claims continued to dominate the industry, representing 53.9% of total payouts.

In November 2024, Liam, Persatuan Insurans Am Malaysia and the Malaysian Takaful Association reported that the insurance and takaful industry experienced an “unprecedented” cumulative 56% rise in claims from 2021 to 2023.

The group reported that increased medical insurance premiums are “unavoidable” in light of rising claims and medical inflation.

Earlier this month, a retiree, Wong Kee Chong, threatened legal action over steep medical insurance premium hikes.

His lawyer, Ng Kian Nam, said Wong is demanding that the insurer stop imposing increases beyond the ranges stated in the policy illustration, that Bank Negara Malaysia issue a permanent circular to enforce this, and that both parties explain why insured patients are charged more than cash‑paying patients.