Medical claims costs rise 12.3%
The insurance and takaful industry paid RM13.5 billion in claims in 2025, up about 10.7% from RM12.2 billion the previous year.
The Malaysia Medical Claims Inflation Report 2025 revealed that medical claims inflation surged 12.28% last year, driven by heightened healthcare utilization. The insurance and takaful sector disbursed RM13.5 billion in claims in 2025, a 10.7% rise from RM12.2 billion the prior year. Public hospital claims, comprising 9% of all claims, saw a 14% reduction in costs compared to the previous year.
Private hospital expenses increased by 5.89%, while claims in private day-care settings rose 2.3%. LIAM CEO Mark O Dell stated that the report aligns with the World Bank's assessment of Malaysia's medical and health insurance/takaful sector, attributing the cost surge to healthcare utilization and service intensity. Radzuan Mohamed of the Malaysian Takaful Association emphasized the urgent need for sustainable medical protection through cross-sector collaboration among policymakers, healthcare providers, insurers, takaful operators, and consumers.
GIA CEO Chua Kim Soon highlighted that managing claims growth necessitates unified efforts from stakeholders to enforce transparency and efficient care delivery. The industry pledged commitment to building an affordable, transparent, efficient, and sustainable healthcare ecosystem, ensuring Malaysians maintain access to quality medical protection.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
