Global private medical insurance (PMI) costs are expected to rise by 10.3% in 2026, continuing a multi-year trend of double-digit increases, according to WTW’s 2026 Global Medical Trends report.

The survey of 346 health insurers across 82 countries found Asia Pacific would experience the highest average increase at 14%, followed by Latin America (11.9%), and the Middle East and Africa (11.3%). Costs are expected to moderate slightly in North America (9.2%) and Europe (8.2%).

More than half (55%) of insurers expect elevated medical inflation to persist beyond three years, driven by rising treatment and pharmacy costs, outpatient pressures, and the global rollout of new medical technologies – cited by 74% of respondents as the top cost driver. Other factors include the decline of public health systems (52%) and advances in pharmaceuticals (49%).

“Despite variations in healthcare provision in different countries and regions around the world, rising medical costs are a consistent trend for all,” said Linda Pham, Global Health and Risk Leader for Integrated and Global Solutions at WTW. “One glimmer of hope for employers is that investment in technologies, including artificial intelligence (AI), is leading to higher costs at the moment but following this phase new technologies are expected to reduce healthcare cost trends in the longer term.”

Cancer remains the most expensive and fastest-growing diagnosis globally, cited by 57% of insurers, with increasing incidence among under-40s. Cardiovascular conditions (50%) and behavioural health issues (37%) are also driving costs.

“The challenge of navigating healthcare inflation for multinational employers requires strategic management,” said Kevin Newman, WTW’s Head of Health and Benefits Europe. “Employers can manage costs through education, prevention programmes, and flexible benefits.”

The ITIJ team recently asked experts for their opinion on the most effective ways to mitigate the effects of medical inflation.