Malaysia - RM9.4 Medical Claim 2025

Medical claims rose 5.3 per cent in 2025 from a year earlier, making up the largest share of total payouts at 53.9 per cent, according to the Life Insurance Association of Malaysia (Liam). In its 2025 annual report, Liam said medical claims increased to RM9.4 billion from RM8.9 billion in 2024.

Disability benefits, which accounted for 0.9 per cent of total payouts, recorded the sharpest growth, surging 77.4 per cent from RM89 million in 2024 to RM157.9 million in 2025.

Liam said total claims payouts, including death, disability, medical, bonuses and other benefits, rose 3.4 per cent to RM17.4 billion in 2025 from RM16.8 billion in 2024.

The association said the life insurance industry continued to expand in 2025, although the growth rate was slower than in 2024.

In force premium rose 3.1 per cent to RM50.7 billion from RM49.1 billion in 2024, driven mainly by a 9.4 per cent increase in group policies and a six per cent rise in investment-linked policies.

Traditional policies, however, declined 2.9 per cent to RM15.6 billion.

The total sums assured in force rose 2.8 per cent to RM2.11 trillion in 2025 from RM2.05 trillion in 2024, while investment-linked policies recorded a 4.4 per cent increase to RM1.09 trillion in 2025.

Group policies sums assured in force which grew by 2.6 per cent to RM721.3 billion in 2025 whereas sums assured in force of traditional policies fell 2.6 per cent," it said.

Liam said the number of policies in force edged down 2.3 per cent to 12.7 million units in 2025 from 12.9 million units a year earlier.

It noted that investment-linked policies in force increased 1.9 per cent to seven million units, while group policies slipped 1.5 per cent and traditional policies declined by seven per cent.

Additional 10% Insurance Discount For Responsible Driver

Motorists with good driving records could see total motor insurance savings of up to 65 per cent under the Cermat Madani initiative, which introduces an additional risk-based rebate on top of existing no-claim discounts. Transport Minister Anthony Loke said the framework is designed to better reflect driving behavior in insurance pricing, rewarding low-risk motorists through data-based assessments.

Responsible drivers should not be treated the same as those with higher-risk driving records.
He stressed that the benefit is based on individual risk profiling rather than commercial discounts or promotional offers. Under Cermat Madani, drivers who drive responsibly and are assessed to have lower risk profiles may be considered for premium benefits of up to 10 per cent, subject to the evaluation and decision of participating insurance companies or takaful operators.

This additional rebate will be layered on top of the existing no-claim discount (NCD) of up to 55 per cent, allowing eligible motorists to potentially enjoy total savings of up to 65 per cent. The system will later be strengthened through wider use of data to improve the accuracy and fairness of risk-based pricing.

Malaysia Healthcare Targets Indonesia

Malaysia Healthcare Travel Council (MHTC), together with Tourism Malaysia, recorded strong visitor engagement at Malaysia Fair Jakarta 2026, held from 4 to 7 June 2026 at Gandaria City, underscoring sustained interest among Indonesian consumers in Malaysia's healthcare, wellness and travel offerings. Organised in conjunction with Malaysia Year of Medical Tourism 2026 (MYMT 2026), themed "Healing Meets Hospitality", the initiative brings together healthcare providers, tourism stakeholders and educational institutions under one roof, offering Indonesian visitors exclusive access to world-class healthcare services, travel experiences and study opportunities.

The initiative comes at a time when Indonesia remains Malaysia Healthcare's largest and most important source market. In 2025 alone, Indonesia contributed approximately RM2.2 billion in healthcare travel revenue to Malaysia, representing a 23% year-on-year increase in revenue and a 16% increase in healthcare traveller arrivals compared to 2024. Meanwhile, over 970,000 Indonesian healthcare travelers visited Malaysia, indicating ongoing trust in Malaysia's healthcare system. Major treatment areas for Indonesian patients include health screening, gastroenterology, cancer treatment, endocrinology, cardiology, and orthopaedic surgery, highlighting Malaysia's capability to provide wide-ranging and specialized care for regional patients.

Igloo Distribute Insurance Solutions Vietnam & Indonesia

Igloo - an insurance technology (insurtech) company, will now distribute insurance solutions of Chubb Life Insurance, across Vietnam and Indonesia.

Under their partnership, Chubb Life’s life, health, and critical illness products will be available in Ignite, Igloo’s artificial intelligence (AI) powered platform for insurance agents. Ignite by Igloo currently operates an agency network in Vietnam and Indonesia.

Roll-out begins in June 2026. Further details on product launches and local initiatives to be announced at a later stage.

Igloo has over 40 insurer partners and over 75 distribution partners across the region.

Life insurance penetration in Vietnam and Indonesia remains low. In Vietnam, life premiums represent just 1.3% of the GDP. For Indonesia, the figure is at 1.5% of the GDP.

Bankruptcy Among Malaysian Civil Servants

Almost all bankruptcy cases involving civil servants recorded nationwide this year were linked to personal debt, with some owing more than RM4 million, according to the Insolvency Department. 197 of the 200 bankruptcy cases involving civil servants recorded nationwide in the first 4 months of this year (2026) were caused by financial loans and personal commitments.

4 of the 200 cases involved debts exceeding RM4 million, believed to include business loans or cases in which individuals used their names to secure company loans. The remaining cases involved debts ranging from RM100,000 to RM4 million. This shows a serious level of indebtedness and indicates that the financial condition of Malaysians is unstable.

The largest group involved in bankruptcy comprises support-category civil servants, with the majority being men. Most of those declared bankrupt were from the support and implementation groups, aged between 35 and 40, and had taken loans more than 10 years after joining the civil service.

National data also shows that around 70 per cent of cases involve men, with a ratio of about one to two, as they are usually the main financial providers for their families. Other causes of bankruptcy included housing loans, vehicle loans and the use of credit cards to cover daily living expenses. There are also cases involving overlapping debts, where individuals take new loans to settle old debts, but all of it stems from personal loans.

Sarawak recorded the highest number of bankrupt civil servants at 23, followed by Melaka with 22 and Selangor with 18. 46 teachers nationwide were declared bankrupt during the same period, with Melaka recording the highest number at 13 cases, while Selangor recorded two.

Under the second chance policy, 10,000 individuals in Selangor had been released from bankruptcy status between October last year and March this year.

Investment-linked Policy - No Capital Guaranteed

The Monetary Authority of Singapore (MAS) and Life Insurance Association (LIA) have issued stern warnings against the use of the descriptor “capital guaranteed” for investment-linked policies (ILPs), in their latest effort to stamp out such misrepresentations.

Over the past few months, some insurance agents and financial adviser (FA) representatives have used the term “capital guaranteed upon death” to refer to the death benefit of ILPs. This is an attempt to appeal to Singaporeans’ penchant for safer investments, especially among seniors and pre-retirees who seem to be the main targets.

The death benefit - of ILPs typically has a guaranteed component, but there is no capital guarantee. Some advisers have also sought to persuade prospective clients to fulfil only half of the Full Retirement Sum (FRS) in their Central Provident Fund (CPF) Life accounts – which means satisfying only the Basic Retirement Sum (BRS) – and to invest the other half in an ILP.

According to the proposition, the combined income from CPF Life (BRS) and the ILP wuld offer a higher eventual monthly payout than the individual stands to receive had he or she fulfilled the FRS. For CPF members turning 55 in 2026, the BRS is S$110,200 and the eventual monthly payout at 65 is estimated at S$950. The FRS is S$220,400, and the expected monthly payout S$1,780.

The product in question was an ILP apparently issued by Etiqa and FWD. FWD has disavowed such marketing approaches.

MAS said it expects FA reps to “act honestly and in the interest of customers when providing financial advice”. “Sales materials, including those for product comparison, must be accurate and clear. Key product features, risks and charges must be disclosed in a manner that does not mislead the customer. MAS said consumers who have concerns about how a product was marketed to them should approach the financial institution that the salesperson represents. 

The term ‘capital guaranteed upon death’ is not industry-recognized and does not appear in ILP standard documentation. Consumers should not be misled into believing their capital is protected from market risks when it is not.

The Financial Industry Disputes Resolution Centre (Fidrec) said it received 160 claims relating to ILPs last year, compared with 211 in 2024 and 55 in 2023.

Bangladesh Ban Non-life Insurance Agent

Bangladesh's Insurance Development and Regulatory Authority (IDRA) said it will abolish the system of individual agents and licences in the non-life insurance sector starting 1 January 2026.

The move aims to protect policyholders, strengthen financial discipline amongst insurers, and improve the overall management of non-life insurance business. From the effective date, insurers will no longer be allowed to engage individual agents, and no payments or benefits may be given under the name of individual agent commission or similar arrangements.

IDRA said the decision follows issues identified in the non-life insurance market and will be enforced under Section 58(1) of the Insurance Act 2010. 

The directive applies to all non-life insurance business in the country and is intended to ensure proper implementation across the industry.