Answer to Oral Question PL236

QUESTION

Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abd. Rahman bin Haji Ibrahim

YANG BERHORMAT PEHIN ORANG KAYA LAILA SETIA DATO SERI SETIA AWANG HAJI ABD. RAHMAN BIN HAJI IBRAHIM asked YANG BERHORMAT Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II to state whether BDCB has issued/will issue guidelines to control premium prices so that they are reasonable and affordable; ensure that policy coverage meets the needs of policyholders; and monitor its impact on business costs, especially taking into account the need for medical insurance for permanent residents and foreign workers? Is the Government also planning a universal protection scheme for green card holders, including international students, through the relevant visas?

ANSWER

Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II

Thank you Yang Berhormat Yang Di-Pertua, Kaola would like to express thanks to Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abd. Rahman bin Haji Ibrahim for the question regarding guidelines for policy coverage as well as the control of premium prices, taking into account the need for medical insurance for every level of the population and foreign nationals.

For the information of Your Honourable Members, Brunei Darussalam Central Bank (BDCB) has already introduced product development and pricing guidelines for insurance companies and takaful operators (Guidelines on Product Development and Pricing) in 2021 and 2022 respectively.

These guidelines provide guidance on good practices that need to be taken into account by insurance companies and takaful operators, particularly in relation to product development and price setting, in line with considerations of operational, risk management and financial aspects.

Although insurance and takaful premium and contribution rates differ from one company to another, these differences normally take into account several main factors. Among them are the policyholder's risk profile, coverage for pre-existing illnesses, as well as outpatient services.

Nevertheless, as the regulator of the insurance and takaful sector, BDCB always prioritises ensuring that the protection offered by insurance companies and takaful operators is appropriate to the needs and risks of each policyholder.

Following this, in 2022, BDCB also introduced guidelines for underwriting and claims management. This is to ensure that strategies, policies, and procedures for matters related to key activities are taken into account in the risk framework of every insurance company and takaful operator.

However, BDCB will continue to monitor the impact of the premium rates and contributions offered, including their implications on business costs. This includes the growing need for medical insurance for permanent residents and foreign workers in this country.

Furthermore, BDCB also continuously ensures that insurance companies and takaful operators remain stable and resilient. This is important so that existing insurance protection can continue to cover every level of society, including foreign nationals, in line with the policy currently being enforced. At the same time, the public is also encouraged to make comparisons and choose medical insurance products that are suitable to their respective risk appetite or selera risiko. This is to ensure that the insurance protection taken is sufficient, especially when the need arises to make claims for medical costs.

For further information on this matter, the public may contact the Brunei Insurance and Takaful Association, or BITA.

Lastly, regarding the "universal protection scheme", it is subject to a suitable model and consultation with industry players. However, BDCB will always ensure that medical insurance costs will not impose a heavy burden on foreign nationals in this country, such as foreign workers and international students.

That is all. Thank you Yang Berhormat Yang Di-Pertua.