Global health insurance costs are projected to rise 10.3% in 2026, continuing a multi-year trend of steep increases, according to WTW’s 2026 Global Medical Trends report.
This follows 10% growth in 2025 and 9.5% in 2024, highlighting sustained inflationary pressure on insurers and employer-sponsored health plans.
Regionally, Asia Pacific is expected to see the largest increase at 14%, while Latin America will accelerate from 10.5% this year to 11.9% next year. The Middle East and Africa will also face above-average increases at 11.3%. North America and Europe are projected to moderate slightly, rising 9.2% and 8.2% respectively.
In the US, healthcare costs are forecast at 9.6%, slightly below 2025’s 9.7%, but still well above the 7.6% recorded in 2024.
For insurers, these rising costs translate into higher claims exposure and pressures on underwriting profitability. WTW’s survey found over half of insurers expecting elevated trends anticipate them persisting for more than three years, driven by high medical costs, pharmacy and outpatient service pressures, and structural shifts in healthcare delivery. New medical technologies, cited by 74% of insurers, remain a key driver of claims inflation, followed by declining public health systems (52%) and pharmaceutical advancements (49%).
Cancer remains the leading cost driver for insurers globally, cited by 57% as the fastest-growing and most expensive diagnosis. Cardiovascular conditions (50%) and behavioral health issues (37%) also significantly contribute to rising claims. Younger populations are increasingly affected, increasing the risk of higher long-term claims liabilities for insurers.
Insurers and employer plans are responding with measures such as plan design adjustments, claims management programs, and wellness initiatives to mitigate financial exposure.
WTW highlighted the importance of monitoring trends, investing in preventive care, and leveraging technology, including AI, to improve claims forecasting and control costs over the long term.
The outlook suggests insurers will continue to face claims pressure in 2026, requiring strategic premium adjustments, robust reserve management, and targeted interventions to control medical trend impacts while maintaining plan competitiveness.
