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With claims payout on the rise, Malaysians urged to get insured

Publish date: Mon, 22 Apr 2024, 06:37 PM

KUALA LUMPUR (April 22): The Life Insurance Association of Malaysia (LIAM) is calling upon Malaysians to secure life insurance coverage in light of the rising trend in claims payouts for the past two years.

Total payout surged by 14.9% to RM15.4 billion last year, compared with RM13.4 billion in 2022, primarily driven by a 41.4% hike in disability payment and a 26.2% rise in medical claims.

LIAM president Raymond Lew said the surge in claims payout was also due to Malaysia's high medical inflation rate, emphasising an urgency in ensuring adequate insurance coverage for all Malaysians.

“If [one is] not insured now, what would happen to families when an illness hits their sole breadwinner or if he or she dies?" he said after the LIAM Raya Celebration with Children's Homes and Stakeholders event on Monday.

Meanwhile, chief executive officer Mark O’Dell said insurance premiums are expected to continue rising as higher medical claims are expected to add pressure on premiums.

On insurance for senior citizens, he said individuals in their 70s and 80s are facing limited options for medical coverage, with incident rates on the rise.

"Premiums are going up and if it continues to increase, senior citizens won't be able to afford insurance, this is the problem that we are dealing with.

“Additionally, if you are not insured before you're 65 or 70 years old, you cannot get insured after, as no company would be willing to sell a brand new policy to somebody over 70," he said.

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