Allianz Malaysia Supports Healthcare Reforms To Promote Affordability And Insurance Sustainability
KUALA LUMPUR, June 26 (Bernama) – 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 said increasing medical costs — driven by inflation, higher hospital utilisation, and the growing prevalence of complex treatments such as cancer — have placed mounting pressure on insurers.
He noted that the volume of high-value medical claims has seen a noticeable increase, with the largest single claim recorded at RM1.2 million for an Allianz Malaysia customer.
“The introduction of interim measures has sparked constructive discussions across the entire healthcare ecosystem.
“These discussions are essential, as all stakeholders are now actively exploring strategies to manage inflation while ensuring continued access to high-quality care,” Wang told reporters in a press conference following the group’s 51st annual general meeting (AGM), held in a hybrid format, yesterday.
He expressed optimism that within the next three years, the healthcare system would evolve to become more transparent and efficient.
Wang raised concerns about drug pricing and wastage, emphasising the need for pricing reforms and improved inventory management.
“We have seen drug markups ranging from 150 to 250 per cent, which is a significant difference. Reducing wastage, such as unused medications that could be returned to providers, is crucial to improving efficiency,” he said.
In response to the rising cost environment, Wang said Allianz Malaysia has introduced new health insurance products that incorporate deductibles and co-payment (copay) features — common in more mature markets — to promote consumer responsibility and help curb medical inflation.
While some non-governmental organisations (NGOs) have voiced concerns over copay models, Wang supports the approach, saying it is essential to ensure long-term affordability and sustainability.
Bank Negara Malaysia (BNM) implemented interim pricing measures in December 2024 to cap health insurance premium increases, as part of a broader initiative to stabilise the sector.
Wang also welcomed the establishment of a Joint Ministerial Committee on Private Healthcare Costs between the Ministry of Health and Ministry of Finance to address structural challenges in the healthcare system.
“Allianz Malaysia has been actively engaging with hospitals and regulators through productive dialogues and pilot initiatives to manage costs more effectively,” he highlighted.
Wang also stressed the importance of educating policyholders on their rights and responsibilities, especially in seeking transparency about treatments and related charges.
Malaysia’s healthcare inflation reached 15 per cent in 2024, driven by technological advancements and the rising incidence of non-communicable diseases (NCDs).
This surge has significantly increased demand for healthcare services and, consequently, the volume of claims filed with insurers and takaful operators (ITOs).
Solid Financial Performance in 1Q 2025
For the first quarter of (1Q) 2025, Allianz Malaysia posted a robust 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.
The group’s general insurance arm, Allianz General Insurance Company (Malaysia) Bhd, retained its market leadership with a 14.9 per cent market share, bolstered by growth in the motor and commercial segments.
Meanwhile, Allianz Life Insurance Malaysia Bhd held its position as the fourth-largest life insurer in the country, with an 11.8 per cent market share.
-- BERNAMA