What is the average claim approval rate for insurance and takaful operators?

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Insurance and Takaful Operators Maintain High Claim Approval Rates

Insurance and takaful operators (ITOs) in Malaysia consistently approve a high percentage of claims, with an average approval rate of over 90 per cent in 2025. This translates to more than one million claims being approved annually across the industry, as stated by Deputy Finance Minister Liew Chin Tong in the Dewan Rakyat. These figures aim to address concerns raised by policyholders regarding claim rejections, particularly for critical illnesses.
High Approval Rates Consistently Achieved

Industry data for 2025 indicates that ITOs maintained an average claim approval rate exceeding 90 per cent. This consistent performance means that collectively, the industry approves over a million claims each year, demonstrating a commitment to processing a significant volume of policyholder requests.
Protection Against Arbitrary Policy Cancellation

ITOs are restricted from unilaterally cancelling a policy or takaful certificate without valid justification. Specifically, these operators are prohibited from terminating or refusing to renew coverage simply because a policyholder has submitted a claim or developed health issues after obtaining the insurance or takaful.
Fair Claims Review Based on Contractual Terms

Under Bank Negara Malaysia's Medical and Health Insurance and Takaful (MHIT) policy document, ITOs are mandated to review and manage claims equitably, adhering strictly to the agreed-upon contractual terms. This process includes verifying that claims fall within the defined scope of coverage and are deemed medically necessary, often aligned with standard treatment protocols and clinical practice guidelines.

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What is the average claim approval rate for insurance and takaful operators?

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