Central financial institution points draft revised guidelines on medical insurance

Financial institution Negara Malaysia (BNM) has issued an publicity draft of a coverage doc to replace the Financial institution’s proposed necessities and steerage for insurers finishing up medical and medical insurance/takaful (MHIT) enterprise.

Developments in MHIT enterprise have elevated the give attention to licensed insurers and takaful operators (ITOs) to innovate repeatedly to fulfill evolving customers’ wants whereas balancing the necessity to make sure that the MHIT enterprise stays sustainable in the long run.

The coverage doc, when finalised, goals to replace the necessities on the conduct of the MHIT enterprise, consistent with the important thing methods outlined within the Financial institution’s Monetary Sector Blueprint 2022-20261 issued on 24 January 2022, to advertise the next:

(a) Be certain that customers can entry a wider selection of MHIT merchandise that cater to completely different healthcare wants and inside respective customers’ cheap means;

(b) Facilitate customers’ decision-making course of when buying MHIT merchandise and promote enhanced understanding of MHIT merchandise;

(c) Defend coverage homeowners’/takaful members’ pursuits;

(d) Protect the continuity and sustainability of the MHIT enterprise by way of sound underwriting and pricing insurance policies; and

(e) Facilitate higher knowledge sharing to help higher value management administration and pave the way in which in direction of higher transparency.

Areas coated

The doc units out the regulatory necessities and operational flexibilities masking the next areas:

(a) Underwriting and phrases of problem;

(b) Product design, together with limitations that apply;

(c) Re-pricing and danger pooling practices;

(d) Commissions and incentives;

(e) Monitoring and reporting necessities for MHIT-related knowledge; and

(f) Enterprise conduct and disclosure to customers.

The Financial institution invitations written suggestions on this publicity draft. All submissions ought to be submitted by 15 March 2023.

To learn the publicity draft, click on here.