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 overall medical claims costs surged by 12.28% in 2025, driven by increased healthcare utilization. Insurance and takaful companies disbursed RM13.5 billion in claims, marking a 10.7% rise from RM12.2 billion in 2024. Public hospital claims, accounting for 9% of all claims, contributed to a 14% drop in costs compared to the prior year.
Private hospitals saw a 5.89% increase in costs, 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, highlighting healthcare utilization and service intensity as key factors. Malaysian Takaful Association CEO Radzuan Mohamed emphasized the need for collaboration among policymakers, healthcare providers, insurers, takaful operators, and consumers to ensure sustainable medical protection.
GIA CEO Chua Kim Soon stressed the importance of unified efforts among stakeholders to enforce transparent practices, curb fraud, and improve cost transparency. The insurance and takaful industry pledged to work with all stakeholders for an affordable, transparent, efficient, and sustainable healthcare ecosystem, securing Malaysians' 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.
