Global health insurance costs are expected to rise by an average of 10.3 per cent in 2026, according to a new report by WTW.
It found Asia-Pacific is anticipating the steepest jump at 14 per cent, while Latin America is expecting a an increase of 11.9 per cent. The Middle East and Africa will see an increase of 11.3 per cent, while North America’s trend is expected to ease slightly from 9.4 per cent to 9.2 per cent. Europe will see a small decline from 8.3 per cent to 8.2 per cent.
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More than half (55 per cent) of insurers expecting higher costs believe these elevated levels will persist for at least the next three years, pointing to sustained pressure across outpatient and pharmacy services and deeper structural issues in global health systems. New medical technologies were cited as the top driver of inflation by 74 per cent of insurers, followed by the decline of public health systems (52 per cent) and pharmaceutical advancements (49 per cent), reflecting ongoing changes in how care is delivered worldwide.
More than half (57 per cent) of insurers cited cancer as the fastest-growing and most expensive condition and three-quarters reported an increase in cancer incidence among plan members younger than age 40. Cardiovascular conditions ranked No. 2 at 50 per cent, followed by behavioural health issues at 37 per cent.
“Rising medical costs remain a consistent trend around the world,” said Linda Pham, WTW’s global health and risk leader for integrated and global solutions, in a press release. She noted while investments in technologies, including artificial intelligence, are contributing to short-term pressures, they may help lower cost trends over time as they become more integrated into care.
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