SINGAPORE, 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 Singapore, medical cost is expected to increase significantly at 16.9% in 2026, above this year’s rate of 15.5%.
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.
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.”
Singapore's growing medical cost trend is influenced by several factors. These include an aging population, a rise in disease incidence, improved early detection and the long-term management of conditions such as cancer, diabetes and obesity.
Additionally, the adoption of costly new technologies, treatments and pharmaceuticals, along with high operating expenses, driven by increasing real estate prices and salaries due to a shortage of healthcare staff, also contribute to the medical cost increase trend.
“Insurers in Singapore are raising co-pays and deductibles to instill shared responsibilities with the insured members and control escalating expenses.”
Fong Han Wei | Head of Health & Benefits, Singapore, WTW
As health insurance coverage becomes more widespread, patients are becoming more accustomed to price and more advanced treatments or health screenings, leading to increased healthcare spending overall. “In response, insurers in Singapore are raising co-pays and deductibles to instill shared responsibilities with the insured members and control escalating expenses,” said Fong Han Wei, Head of Health & Benefits, Singapore.
“Rising medical costs continue to be a worldwide trend. Employers in Singapore 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.”
Eva Liu | Head of Strategic Development, Asia Pacific, Health & Benefits, WTW
Eva added: “Companies can include an element of flexibility into employee benefits programmes, so that employees can utilise the benefits they need. To control cost, 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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