A new report has projected that the APAC region will experience the highest cost increases globally in medical costs at 14% in 2026, while medical cost inflation in Singapore is projected at 16.9% next year.
According to WTW’s 2026 Global Medical Trends report, medical costs around the world are set to rise again in 2026 with Asia Pacific (APAC) reporting the highest increase at 14% in 2026. In Singapore, medical cost is expected to increase significantly at 16.9% in 2026, above this year’s rate of 15.5%.
These projections underscore a growing sense of concern among insurers, as 57% anticipate further increase in global medical cost trends over the next three years in APAC and 42% expect these elevated levels to persist for more than three years. The data shows that relief is unlikely in the near term.
Insurers are bracing for prolonged cost pressures, driven by high medical costs, regional pressures on pharmacy, outpatient services and global structural factors, as well as condition-based factors such as rising cancer incidence, particularly among younger populations.
According to WTW’s research, these include new medical technologies, cited as the top reason for increased costs with three-quarters (77%) of insurers naming it as the primary driver of medical inflation. Followed by advancements in pharmaceuticals (63%) and little or the lack of cost sharing (51%), both of which reflect deeper systemic shifts in healthcare delivery and innovation.
From a disease-based perspective, cancer is the leading condition driving medical costs globally. It is named as the fastest growing and most expensive diagnosis for insurers, cited by 58% of insurers in APAC. Over 80% of insurers also observed an increase in cancer incidence among individuals under the age of 40.
Cardiovascular conditions (53%) are also growing significantly and rank second among the conditions driving medical claims costs, with musculoskeletal tissue (34%) and diabetes (27%) ranked third and fourth respectively.
Trends in Singapore
Singapore's growing medical cost trend is influenced by several factors. These include an aging population, a rise in disease incidence, improved early detection and the long-term management of conditions such as cancer, diabetes and obesity.
Additionally, the adoption of costly new technologies, treatments and pharmaceuticals, along with high operating expenses, driven by increasing real estate prices and salaries due to a shortage of healthcare staff, also contribute to the medical cost increase trend.
As health insurance coverage becomes more widespread, patients are becoming more accustomed to price and more advanced treatments or health screenings, leading to increased healthcare spending overall