Higher healthcare use drives Malaysia’s 12.28pc medical claims inflation

KUALA LUMPUR, Aug 27 — The Malaysia Medical Claims Inflation Report 2025 revealed that medical claims inflation surged 12.28 per cent in 2025, with healthcare utilisation driving most of the increase. Insurance and takaful firms paid RM13.5 billion in claims, a 10.7 per cent rise from RM12.2 billion the previous year. LIAM CEO Mark O’Dell noted that 11.22 percentage points of the increase stemmed from a surge in claim numbers, highlighting healthcare utilisation as a key factor in rising costs.

Public hospital claims, comprising 9 per cent of all claims, saw a 14 per cent cost decrease compared to private hospital claims that rose 5.89 per cent and private day-care claims that increased 2.3 per cent. The report linked ageing populations and non-communicable diseases to higher healthcare use, with inpatient claims falling slightly and day-care claims rising.

Medical claims typically make up 75 to 80 per cent of insurance premiums and takaful contributions, putting pressure on their adequacy. Experts suggest measures like deductibles, co-insurance, government initiatives, and better cost transparency to curb claims growth.