WTW data shows insurers expect health costs to keep rising

Over half expect elevated levels to persist for more than three years. 

Global medical costs are expected to rise by an average of 10.3% in 2026, which could put more pressure on health insurers, according to early findings from WTW’s Global Medical Trends Survey.

The sustained increase marks the third consecutive year of acceleration, up from 9.5% in 2024 and 10% in 2025. 

Asia-Pacific is forecast to post the highest medical inflation worldwide at 14%, whilst Latin America will see the fastest year-on-year jump, from 10.5% to 11.9%.

In contrast, medical cost growth in North America (9.2%), Europe (8.2%), and the Middle East and Africa (11.3%) is expected to stabilise.

WTW said insurers remain cautious, with 56% expecting further increases in medical cost trends and 55% anticipating elevated levels to persist for more than three years. 

The firm noted that sustained inflation in healthcare pricing, increased utilisation, and rising demand for advanced treatments are amongst the key factors behind the outlook.

The 2025 survey drew responses from 346 health insurers across 82 countries between June and July, supplemented by input from WTW brokers in 54 additional markets. 

The combined data covered 91 countries, with GDP per capita used to weight regional and global trend rates.