Malaysia: New Policy Document on Medical and Health Insurance/Takaful (MHIT) business

On February 29, 2024, Bank Negara Malaysia issued new requirements and guidance on the medical and health insurance/Takaful (MHIT) business, which includes medical reimbursement, critical illness, long-term care, hospital income and dental insurance or Takaful products. The revised requirements aim to address a number of significant developments in managing MHIT business which have contributed towards an increase in the utilisation of medical services and the magnitude of claims. This e-Alert covers key areas of updates and enhancement, including:

• Introduction of co-payment features
• Central medical claims data platform
• Repricing policies and procedures
• Revised product disclosure sheets
• Needs-based assessment
• Prohibition on concluding sales through the telemarketing channel