Health Insurance Industry Analysis

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2.2.4 Rising Life Expectancy and Aging Population

As noted by Luet et. al. (2015), the medical advancements in recent times have increased the average life expectancy of people and thus the number of aging population has increased as well. These two factors have become the key drivers of the Malaysian health insurance industry. The average life expectancy of male was 59.4 years, and for females was 60.3 years in 1960 of the Malaysian people. However, in 2011 it is 72.1 years for men and 76.5 years for women. These figures suggest that the increasing life expectancy of people means that increasing medical cost and thus the premiums of health insurances will be higher in the coming years.

2.3 Benefits Provided By Health Insurance to the Malaysian Population

2.3.1 Private and Public HealthCare Benefits

Malaysian health insurance industry is divided into two segments namely private and public health insurance sector each of which provides different types of benefits to the
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Customarily, two primary types of MHI are accessible namely ‘medical expense insurance’ and ‘dread disease benefits’. The first, which is commonly referred to as hospitalisation and surgical protection, help to cover hospitalisation and surgical costs acquired, while the latter for the most part gives a singular amount of endless supply of any of the fear / dread illnesses or basic ailments indicated. Hospitalisation and surgical cost protection is the biggest MHI class, which represented 81% of aggregate MHI premiums in 2002. This sort of cover is principally produced through riders connected to singular extra security arrangements. Gathering MHI strategies, comprising of chiefly hospitalisation and surgical benefits provided by businesses as a basic segment of the compensation bundle to their staff, represented 16% of aggregate MHI premiums or RM147.7 million (Abdelfattah et al.,

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