This is false, it does not eat into the monthly spending criteria (for the normal RM60 per month of Simply).
The insurance does the equivalent of a chargeback (not sure the right term), but most banks will see this as a 'cancellation' of a previous charge (which is fair, because the amount is effectively deducted from what you originally paid for the insurance).

The problem for us then is that some cards need minimum spend, this will affect it negatively. In worse case, for example last time Maybank2Kard Amex if you get that sort of chargeback on a weekend for spending on a weekday, the bank system will note negative spend on weekend and actually 'claw back' cashback even more than what you earned that month (so they CHARGE you money as cashback).

If this sort of things happen with your insurance, try and make sure to use cards which don't have minimum spend or something like that.

Nothing new, it has been happening since last year. SCB is no longer interested in their doing their CC business here in Malaysia. I have been their customer for 12 years and been getting SST rebate and AF waiver every year but this year I didn't get anything and I cancelled my card last month, until now no retention call. My card is already removed from the app and auto-removed from my Apple Pay too. I was tagged under their Premium customer as well yet they didn't retain me.

My advice is to move on from SCB.