Global health insurance costs are projected to rise by 10.3% in 2026, continuing a multi-year trend of significant increases, according to WTW’s 2026 Global Medical Trends report.
This follows a 10% increase in 2025 and a 9.5% rise in 2024, underscoring persistent inflationary pressures on insurers and employer-sponsored health plans.
Regional Projections
Regionally, the Asia Pacific region is expected to experience the largest increase, with a projected rise of 14%. Latin America’s growth will also accelerate, moving from 10.5% this year to 11.9% in 2026. Meanwhile, the Middle East and Africa will see above-average increases of 11.3%. In contrast, North America and Europe are projected to see more moderate increases, at 9.2% and 8.2%, respectively.
In the US, healthcare costs are forecast to rise by 9.6% in 2026, slightly down from 9.7% in 2025, but still well above the 7.6% increase recorded in 2024.
Impact on Insurers
For insurers, these rising costs translate to higher claims exposure and pressure on underwriting profitability. According to WTW’s survey, over half of insurers anticipating elevated trends expect them to persist for more than three years. The primary drivers include high medical costs, pressures on pharmacy and outpatient services, and structural shifts in healthcare delivery. New medical technologies, cited by 74% of insurers, remain a major driver of claims inflation, followed by the decline of public health systems (52%) and pharmaceutical advancements (49%).
Key Cost Drivers
Cancer remains the leading cost driver globally, with 57% of insurers citing it as the fastest-growing and most expensive diagnosis. Cardiovascular conditions (50%) and behavioural health issues (37%) are also significant contributors to rising claims. Alarmingly, younger populations are increasingly affected, which raises the risk of higher long-term claims liabilities for insurers.
Response from Insurers and Employers
To mitigate financial exposure, insurers and employer-sponsored health plans are implementing measures such as adjustments to plan designs, claims management programmes, and wellness initiatives.
WTW also stressed the importance of monitoring trends, investing in preventive care, and leveraging technologies like AI to improve claims forecasting and control costs over the long term.
Outlook for 2026
The outlook suggests that insurers will continue to face significant claims pressures in 2026, requiring strategic premium adjustments, robust reserve management, and targeted interventions. These measures will be essential to controlling the impact of medical trends while maintaining the competitiveness of insurance plans.