Everyone knows hospital bills can easily wipe out savings.
Yet even with this risk, a growing number of Malaysians are surrendering their health insurance policies as rising premiums push coverage beyond their financial reach.
Cancellations increasing since late last year
This worrying trend didn’t happen overnight. According to Sharipudin, a takaful agency manager, the wave of policy cancellations began toward the end of last year and has only gained momentum in 2025.
“Many people are ending their policies because they simply cannot afford the increased premiums,” he told Sinar Harian.
He explained that stagnant wages are a key factor behind the cancellations.
Salaries are not increasing, yet insurance premiums keep going up. That’s what most people tell us,” he said.
The ripple effect, he added, doesn’t stop there. The loss of clients also affects agents and consultants, whose earnings depend on maintaining a steady pool of policyholders.
Long-term policyholders hit hard
But it’s not just new customers walking away. Sharipudin revealed that many of those cancelling had been paying into their plans for years.
This, he said, makes the situation even more painful for both insurers and clients, as long-term contributors feel forced to give up the protection they had committed to for so long.
Adding to his concerns, fellow takaful consultant Firdaus shared a similar experience.
Nearly half of his clients, he said, have cancelled their policies and some had only recently signed up before deciding they could no longer keep up with the rising costs.
“Most of them understand the importance of takaful plans, especially to cover high hospital bills. But with financial constraints and rising premiums, they feel forced to terminate,” Firdaus explained.
Other factors at Play
However, not everyone attributes the cancellations solely to premium hikes. Alpha Agency Manager Mohammad Amirul Aizat Mohamad Adnan pointed out that external factors such as company-level financial problems also play a role.
“Some people end their policies due to personal or company financial issues as well,” he said, suggesting that rising premiums may be the tipping point rather than the only reason.
