Employee medical plan costs in the Asia-Pacific region are projected to rise by 11.3% in 2026, according to Aon plc’s latest Global Medical Trend Rates Report.
This forecast suggests a stabilisation in cost increases following two years of pronounced growth. The global average medical trend rate is set at 9.8%.
Notably, several major APAC markets – including China, India, Singapore, the Philippines, and Vietnam – are expected to see smaller increases in medical trend rates compared to the previous year.
Medical trend rates measure the yearly percentage change in the cost of medical plans per employee, covering both insured and self-insured arrangements.
These figures are used by employers to plan budgets and refine benefits strategies as healthcare expenses evolve.
Aon’s analysis indicates that about one-third of APAC markets anticipate a slight dip in trend rates, a shift attributed to lower utilization and expanded wellbeing initiatives.
The rest of the region continues to experience upward cost pressures, driven by chronic illnesses, rising use of healthcare services, and the integration of new medical technologies.
Prescription drugs, specialty treatments, and ongoing geopolitical developments also play a significant role in shaping these trends.
The report details both general inflation and medical trend rates across APAC countries.
For instance, China’s medical trend rate is projected to decrease from 8.0% in 2025 to 7.8% in 2026, while India’s is expected to fall from 13.0% to 11.5%.
In contrast, Indonesia and Malaysia are forecast to experience increases, with Indonesia’s rate moving from 16.2% to 16.9% and Malaysia’s from 15% to 16%.
The main medical conditions expected to impact costs in 2026 are largely unchanged from previous years.
Cardiovascular diseases remain the leading driver of claims, followed by gastrointestinal issues and cancer.
Commonly diagnosed cancers in the region include those affecting the lungs, breasts, colon/rectum, and prostate.
Hypertension stands out as both a prevalent condition and a key risk factor for other high-cost diseases.
Other significant contributors include high cholesterol, lack of physical activity, poor diet, and elevated blood glucose levels.
Employers in the region are responding to rising medical expenses by adopting flexible benefits, implementing cost control measures, and expanding well-being programs.
Aon’s 2025 Global Benefits Trends Study notes that one in four companies in APAC plans to offer flexible benefits, with many considering options such as copayments or network limitations.
Preventive health initiatives are increasingly being integrated to address issues like inactivity, stress, hypertension, and high cholesterol.
Tim Dwyer, head of Human Capital for APAC at Aon, noted that double-digit increases in medical trend rates persist across the Asia-Pacific region. He said this trend highlights ongoing strong demand for healthcare services and underscores the importance for insurers to restore profitability to maintain sustainable coverage.
“The challenge and opportunity for employers lies in moving from reactive cost control to proactive health strategy,” he said.
Alan Oates, head of global benefits for APAC at Aon, added that the region’s medical insurance sector is entering a period of change, requiring companies to adopt strategies that create value.
“Larger employers should analyse their own medical trend which may be falling faster than market averages. Now is the time to use local tendering exercises that will drive market competition as underwriters return to profitability at different rates and continue to invest in preventive well-being strategies for sustainable cost management,” he said.
Aon’s 2026 Global Medical Trend Rates Report is based on input from more than 100 Aon offices involved in brokering, administering, or advising on employer-sponsored medical plans.
The findings reflect the perspectives of Aon professionals, informed by their work with clients and insurers throughout the region.
