Global health insurance costs are projected to increase by 10.3% next year, continuing a multi-year trend of steep hikes for employers, according to WTW’s 2026 Global Medical Trends report.

Why it matters: The sustained inflation puts continued pressure on companies footing the bill for employee health benefits. More than half (55%) of insurers surveyed expect these elevated cost trends to persist for more than three years, forcing organizations to re-evaluate their benefits strategies to manage expenses.

By the numbers: The report, which surveyed 346 insurers across 82 countries, shows a consistent upward trend.

  • The projected 10.3% global increase in 2026 follows a 10% rise in 2025 and a 9.5% rise in 2024.
  • Asia Pacific is expected to see the highest increase at 14.0%, while Latin America will see the sharpest acceleration to 11.9%.
  • North America (9.2%) and Europe (8.2%) are projected to see slight decreases in the rate of inflation.
  • In the U.S., costs are expected to rise 9.6%, down slightly from 9.7% in 2025 but well above the 7.6% seen in 2024.
The big picture: Insurers point to several systemic factors driving the long-term cost increases

  • New medical technologies were cited as the top reason by three-quarters (74%) of insurers.
  • The decline of public health systems (52%) and advancements in pharmaceuticals (49%) were also named as primary drivers
Zoom in: From a disease perspective, cancer remains the most significant cost driver for insurers globally (57%).

  • Three-quarters of insurers also reported an increase in cancer incidence among individuals under the age of 40.
  • Cardiovascular conditions (50%) and behavioral health issues (37%) rank as the second and third most costly conditions.
What to watch: While new technology is a primary cost driver now, some see it as a potential long-term solution. WTW's Linda Pham noted that while investments in AI are currently increasing costs, they "hold the promise of reducing healthcare cost trends in the longer term."

In the meantime, employers are being advised to adopt more strategic management of their benefits, including investing in employee education on benefits use, promoting prevention programs for prevalent diseases, and optimizing mental health coverage.

SOURCE: WTW

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