KUALA LUMPUR (Aug 15): Malaysia-based insurance companies confirmed today they have not requested for “cuts” from policyholders' medical expenses at hospitals following allegations on such practice.

The Life Insurance Association of Malaysia (LIAM), General Insurance Association of Malaysia and Malaysian Takaful Association (MTA) said in a joint statement they viewed such unfounded allegations made by the hospitals with serious concerns. General Insurance Association of Malaysia is also known as Persatuan Insurans Am Malaysia (PIAM).

"Insurance companies and takaful operators through LIAM, PIAM and MTA had worked closely with the hospitals and third-party administrators to ensure that the cost of healthcare is maintained at an affordable level.

"In recent years, premium rate increases have been driven by high inflation in healthcare costs, which averaged 12% p.a during the period of 2010 to 2014," the associations said.

Going forward, the associations said they expected insurance premium to rise 15% a year due to factors including an aging population and demand for better healthcare services by a more affluent segment.