Global health insurance costs are projected to rise by 10.3% next year, as healthcare inflation continues to increase, according to research by Willis Towers Watson (WTW).
This follows rises of 10% in 2025 and 9.5% in 2024.
WTW’s 2026 Global medical trends report, which surveyed health insurers, also found that the UK’s 10.6% 2025 healthcare inflation is among the highest in Western Europe, primarily driven by pressure on state-funded healthcare services, resulting in higher claims. However, 2025 has seen this stabilise, with rates falling for some conditions.
The highest cost increases are expected in Asia Pacific at 14%, while Latin America is anticipating an acceleration in costs from 10.5% this year to 11.9% in 2026.
The Middle East and Africa will see above average cost increases at 11.3%, while medical inflation is expected to fall in North America from 9.4% this year to 9.2% in 2026, and in Europe from 8.3% to 8.2%.
More than half (55%) of respondents expect further cost increases to persist for more than three years, driven by high medical costs, regional pressures on pharmacy and outpatient services, and global structural factors.
New medical technologies were cited as the top reason for increased costs at 74%, followed by the decline of public health systems (52%) and advancements in pharmaceuticals (49%).
Cancer is the fastest growing and most expensive diagnosis for insurers, cited by 57% globally. Three-quarters (75%) also observed an increase in cancer among individuals under the age of 40.
Cardiovascular conditions (50%) rank second among the conditions driving medical claims costs, with behavioural health issues (37%) ranked third.
Linda Pham, global health and risk leader for integrated and global solutions at WTW, said: “Despite variations in healthcare provision in different countries and regions around the world, rising medical costs are a consistent trend for all. One glimmer of hope for employers is that investment in technologies, including AI, is leading to higher costs at the moment, but following this phase, new technologies are expected to reduce healthcare cost trends in the longer term.”
Kevin Newman, head of health and benefits Europe at WTW, added: “The challenge of navigating healthcare inflation for multinational employers requires strategic management. This can include investing in education for employees on the use of health benefits, raising awareness of prevention programmes for cancer, optimising mental health coverage, and introducing flexibility of benefits. Through careful management, employers can make sure they are getting the most out of their healthcare benefits while managing cost inflation.”
