Malaysians are facing yet another silent wallet drainer: medical insurance premiums are about to jump.
In a move that could shock many, Prudential Malaysia will raise medical insurance premiums starting April 2025. Why? The insurer says it’s due to a 19.6% spike in claims over the past year, driven by skyrocketing hospital charges and Malaysia’s relentless medical inflation.
Here’s the breakdown that every policyholder and every uninsured Malaysian needs to read. Because this isn’t just an insurance story. It’s a money story.
1. How Much Will Premiums Increase?
The increase isn’t across the board, but it’s widespread.
- Premium hikes will be staggered over three years (2024–2026), following Bank Negara Malaysia (BNM)’s interim guidelines, which cap increases at 10% per year.
- 80% of Prudential customers will see less than 10% increases per year.
But here’s the catch: the percentage sounds small, but over three years that could mean a 30% jump—and for older policyholders, the hike could be even steeper depending on your plan, age, and health condition.
Example 1 - If you’re currently paying RM350/month, your premium could climb to RM455/month by 2026. That’s RM1,260 more a year.Example 2 - A 60-year-old policyholder on RM420/month may see it rise to RM550/month—adding RM1,560 in annual expenses.
2. Why Are Premiums Increasing Now?
Because healthcare in Malaysia is getting more expensive. Fast.
- Medical inflation hit 15% in 2024, above the global and Asia-Pacific averages (10%).
- Hospital stays, surgeries, diagnostics, and medication costs are all rising.
- And post-COVID, more Malaysians are using their medical plans actively.
Insurance companies are bleeding from the rising claims, and they’re passing the cost back to you.
3. What Is BNM Doing to Protect You?
Bank Negara Malaysia introduced the Medical and Health Insurance/Takaful (MHIT) Premium Review framework:
- Caps annual increases at 10%, spread over a minimum of three years.
- Ensures insurers must justify rate hikes with claims data.
- Requires insurers to provide advance notice and support options to affected policyholders.
Read the official BNM MHIT framework here
However, some MPs are questioning whether Prudential is complying fully. Calls are growing for BNM to intervene if price hikes go beyond guidelines.
4. What If You Gave Up Your Policy Recently?
Regret cancelling your plan because of the cost?
Good news: Prudential is offering a one-time reinstatement window.
- If you surrendered or lapsed between Jan 2024 and Feb 2025, you can reactivate your policy without medical underwriting from 15 Jan to 30 June 2025.
No health checks. No reapplication. Just pick up where you left off. But act fast, this window closes soon.
5. Age 60 and Above? You Get a Breather
For seniors aged 60+, Prudential is pausing premium increases for one year, if you’re on a basic/minimum coverage plan.
That gives retirees a temporary break while still maintaining coverage.
6. What You Can (and Should) Do Now
Here’s your financial checklist:
If you already have insurance:
- ✓ Review your policy with your agent. Know what you’re paying for.
- ✓ Request a benefit vs cost analysis. Are you over-covered or under-insured?
- ✓ Ask about co-payment options to reduce monthly premiums.
- ✓ Forecast your 3-year insurance expenses and adjust your annual budget accordingly.
- ✓ Start a medical buffer fund: Set aside 5–10% of your monthly income to hedge against future hikes.
If you’re uninsured:
- ✓ Don’t wait until you’re older or sick, premiums rise with age and risk.
- ✓ Explore entry-level medical plans to stay protected without blowing your budget.
7. Are Other Insurers Doing the Same?
Yes. While Prudential’s rate hike has made headlines, other insurers are expected to follow. Rising claims and inflation affect the entire industry.
Insurers like AIA, Great Eastern, and Takaful providers are all under the same economic pressure. If they haven’t raised premiums yet, they likely will soon.
Now is the time to benchmark your policy against market trends.
8. But Wait: Isn’t Prudential Profitable?
Yes, and this is where things get controversial.
Prudential Malaysia continues to report strong overall profits, but:
- Profits come from multiple segments: life insurance, investments, savings plans, etc. Medical insurance is only one part.
- The medical segment alone may be operating at a loss or reduced margin due to rising claims.
- Insurers must also meet regulatory solvency margins, meaning they need to keep reserves high enough to protect all policyholders , not just chase profit.
Critics argue insurers should balance shareholder returns with policyholder affordability. And this is why BNM’s role as a regulator is more important than ever.
9. Why You Should Get Insured Before Premiums Go Higher
Getting insured now locks in a lower starting premium based on your current age and health.
- The older you get, the higher the base premium, even before annual increases.
- If you fall sick before getting covered, it may be harder or more expensive to get approved.
- Starting earlier gives you more options and more affordable coverage.
Waiting will only cost you more.
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10. Visual Snapshot: Why Premiums Are Rising
11. RinggitWise Verdict: Don’t Let Medical Inflation Catch You Off Guard
This Prudential hike isn’t a one-off. Other insurers may follow. And if Malaysia’s healthcare costs keep rising, so will your premiums.
Don’t panic. Plan.
Check your policy. Talk to your agent. Budget for the increase. And most importantly, don’t stay in the dark.
Because when it comes to insurance, what you don’t know will cost you.
RinggitWise will keep you updated as this story unfolds. Until then, stay informed, spend smart and protect your future.
Don’t Stop Here, Medical Costs Are Just the Beginning.
If rising insurance premiums worry you, wait till you see what retirement looks like for most Malaysians.
Read this next: “Most Malaysians Will Retire Broke — Why You Must Start Now Before It’s Too Late” (Free Checklist)
