Global health insurance costs are projected to rise by over 10% again next year, as healthcare inflation continues to rise following steep cost increases in recent years, the WTW’s 2026 Global Medical Trends Survey says.
The survey of health insurers found that the average cost of medical health benefits will increase by 10.3% globally next year. This follows rises of 10% in 2025 and 9.5% in 2024.
According to the survey, medical inflation remains highest in Asia Pacific, where cost increases are expected to reach 14% in 2026, up from 13.2% in 2025. Latin America is poised for the sharpest acceleration, jumping from 10.5% to 11.9%. %. The Middle East and Africa region is also projected to see acceleration, with trends reaching 11.3% in 2026. Compared to the sharp increases of Asia Pacific, Latin America and the Middle East and Africa, North America and Europe are forecast to see more modest increases of 9.2% and 8.2% in 2026, in line with expected 2025 trends.
These projections underscore a growing sense of concern among insurers. Over half (56%) anticipate further increases in global medical cost trends and 55% expect these elevated levels to persist for more than three years, driven by high medical costs, regional pressures on pharmacy and outpatient services and global structural factors, according to WTW’s research.
These include new medical technologies, cited as the top reason for increased costs with three-quarters (74%) of insurers naming it as the primary driver of medical inflation. Followed by the decline of public health systems (52%) and advancements in pharmaceuticals (49%), both of which reflect deeper systemic shifts in healthcare delivery and innovation.
“Despite variations in healthcare provision in different countries and regions around the world, rising medical costs are a consistent trend for all”, commented Linda Pham, global health and risk leader for Integrated and Global Solutions, WTW. “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 hold the promise of reducing healthcare cost trends in the longer term”, she added.
Five key global medical trends in 2026:
- Tariffs and trade policies are expected to negatively impact healthcare costs
- Fertility and family planning coverage is growing
- Cancer is the leading condition driving medical claim costs
- GLP-1 drugs for obesity expected to rise
- Artificial intelligence (AI) in healthcare
“The challenge of navigating healthcare inflation for multinational employers requires strategic management”, said Courtney Stubblefield, managing director, Health & Benefits, WTW. “This can include investing in education for employees on the use of health benefits, raising awareness of prevention programs for prevalent diseases like cancer, optimizing mental health coverage, and introducing flexibility of benefits. Through careful management and applying both a short- and longer-term lens to their approach, employers can make sure they are getting the most out of their healthcare benefits while managing cost inflation”, Courtney Stubblefield added.
The full report can be found here.
