HONG KONG, November 11, 2025 – Medical costs around the world are set to rise again in 2026 with Asia Pacific (APAC) reporting the highest increase at 14% next year, according to WTW’s 2026 Global Medical Trends report, a leading global advisory, broking and solutions company (NASDAQ: WTW). In Hong Kong, medical insurance cost increase is expected to remain high at 9.9% in 2026.
These projections underscore a growing sense of concern among insurers, as 57% anticipate further increase in global medical cost trends over the next three years in APAC and 42% expect these elevated levels to persist for more than three years. The data shows that relief is unlikely in the near term.
| 2024 | 2025 | 2026 (projected) | |
|---|---|---|---|
| Global* | 9.5% | 10.0% | 10.3% |
| Latin America* | 9.6% | 10.5% | 11.9% |
| North America | 7.4% | 9.4% | 9.2% |
| Asia Pacific | 11.8% | 13.2% | 14.0% |
| Europe | 9.4% | 8.3% | 8.2% |
| Middle East & Africa* | 8.5% | 10.3% | 11.3% |
| APAC markets with higher percentages than regional average in 2026 (projected) | |||
| Indonesia | 12.8% | 16.9% | 15.1% |
| Malaysia | 11.7% | 13.9% | 15.7% |
| New Zealand | 16.5% | 16.3% | 14.9% |
| Philippines | 17.0% | 14.3% | 16.1% |
| Singapore | 12.3% | 15.5% | 16.9% |
| Taiwan | 12.7% | 13.3% | 16.7% |
| APAC markets with lower percentages than regional average in 2026 (projected) | |||
| Australia | 6.8% | 7.6% | 8.3% |
| China | 11.7% | 10.6% | 11.1% |
| Hong Kong | 10.3% | 9.7% | 9.9% |
| India | 9.6% | 11.4% | 12.9% |
| South Korea | 12.6% | 15.0% | 13.5% |
| Thailand | 9.8% | 10.8% | 10.8% |
| Vietnam | 10.3% | 10.7% | 12.3% |
*Global, Latin America, Europe and Middle East & Africa numbers exclude Argentina, Turkey, Egypt, Nigeria and Zimbabwe (excluded due to volatile inflationary environments)
Insurers are bracing for prolonged cost pressures, driven by high medical costs, regional pressures on pharmacy, outpatient services and global structural factors, as well as condition-based factors such as rising cancer incidence, particularly among younger populations.
According to WTW’s research, these include new medical technologies, cited as the top reason for increased costs with three-quarters (77%) of insurers naming it as the primary driver of medical inflation. Followed by advancements in pharmaceuticals (63%) and little or the lack of cost sharing (51%), both of which reflect deeper systemic shifts in healthcare delivery and innovation.
“Understanding the trends and drivers are crucial for employers and insurers to develop effective strategies to manage cost and improve healthcare outcomes for employees.”
Eva Liu | Head of Strategic Development, Asia Pacific, Health & Benefits, WTW
From a disease-based perspective, cancer is the leading condition driving medical costs globally. It is named as the fastest growing and most expensive diagnosis for insurers, cited by 58% of insurers in APAC. Over 80% of insurers also observed an increase in cancer incidence among individuals under the age of 40.
Cardiovascular conditions (53%) are also growing significantly and rank second among the conditions driving medical claims costs, with musculoskeletal tissue (34%) and diabetes (27%) ranked third and fourth respectively.
Eva Liu, Head of Strategic Development, Asia Pacific, Health & Benefits at WTW, said: “Despite variations in healthcare provision in different countries in APAC, rising medical costs are a consistent trend for all. Understanding the trends and drivers are crucial for employers and insurers to develop effective strategies to manage cost and improve healthcare outcomes for employees.”
In Hong Kong, medical inflation remains high due to advances in treatment technology and new drugs. In January 2026, public hospital fees will rise, which is likely to prompt private hospitals to increase prices as well.
Cancer rates remain steady, but the overall cost of treatment has risen substantially, due to increases in hospital and physician fees as well as the adoption of advanced technologies and therapeutic approaches. In response, many insurers now offer health concierge services, managed care support and second opinion consultations to assist patients in accessing appropriate treatments while managing expenses effectively.
“Employers should also consider introducing co-payment or co-insurance design to drive more thoughtful medical spending and discourage excessing claiming.”
Eric Lam | Head of Health & Benefits, Hong Kong, WTW
Eric Lam, Head of Health & Benefits, Hong Kong and Macau at WTW added: “Rising medical costs continue to be a worldwide trend. Employers in Hong Kong must adapt to these trends by investing in education and prevention. Empowering employees to use healthcare benefits wisely to access services, emphasing the importance of preventive care to improve overall health outcomes is one of the actions that can be taken.
“Companies can include an element of flexibility into employee benefits programmes, so that employees can utilise the benefits they need. Employers should also consider introducing co-payment or co-insurance design to drive more thoughtful medical spending and discourage excessing claiming.”
WTW conducted its 2026 Global Medical Trends Survey between June and July 2025. A total of 346 leading health insurers representing 82 countries participated in WTW’s survey. In addition to submissions from insurers, WTW also received input from its local brokers representing 54 countries. The combined data covers 91 countries, including 18 markets in Asia Pacific.
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