Kuala Lumpur: Allianz Malaysia Bhd fully supports systemic reforms in the healthcare sector to address rising medical costs and ensure the long-term viability of the insurance industry for the benefit of customers. Chief executive officer Sean Wang emphasized the increasing pressure on insurers due to rising medical costs driven by inflation, higher hospital utilization, and the growing prevalence of complex treatments.

According to BERNAMA News Agency, Wang highlighted the noticeable increase in high-value medical claims, with the largest single claim reaching RM1.2 million for an Allianz Malaysia customer. He stated that recent interim measures have initiated constructive discussions across the healthcare ecosystem. These discussions are crucial as stakeholders explore strategies to manage inflation while ensuring access to high-quality care.

Wang expressed optimism about the healthcare system’s evolution towards greater transparency and efficiency within the next three years. He raised concerns about drug pricing and wastage, underscoring the need for pricing reforms and efficient inventory management, as drug markups have been observed to range from 150 to 250 per cent.

In response to the rising cost environment, Allianz Malaysia has introduced new health insurance products with deductibles and co-payment features to promote consumer responsibility and curb medical inflation. Despite concerns from some NGOs, Wang supports this approach for maintaining long-term affordability and sustainability.

Bank Negara Malaysia implemented interim pricing measures in December 2024 to cap health insurance premium increases, part of a broader initiative to stabilize the sector. Wang also welcomed the establishment of a Joint Ministerial Committee on Private Healthcare Costs to address structural challenges and emphasized the importance of educating policyholders about their rights and responsibilities.

Malaysia’s healthcare inflation reached 15 per cent in 2024, driven by technological advancements and the rising incidence of non-communicable diseases. This has significantly increased demand for healthcare services and the volume of claims filed with insurers.

For the first quarter of 2025, Allianz Malaysia posted strong financial performance, with total assets rising to RM28.59 billion. Insurance revenue grew by 14.3 per cent to RM1.53 billion, while gross written premiums reached RM2.01 billion. Allianz General Insurance Company retained its market leadership, and Allianz Life Insurance Malaysia held its position as the fourth-largest life insurer in the country.