Kathmandu. Asian employers expect healthcare costs to rise significantly next year.
Asian insurers have forecast that average medical insurance rates will increase by 12.5 percent in 2026. The Philippines is expected to see the second-highest growth at 16 percent. That’s slightly behind Indonesia’s 17.8 percent. Indonesia’s projected growth is much higher than 2.9 percent.
Mercer Mars Benefits (MMB) predicts that 63 percent of insurance companies in Asia will cut coverage in 2026 to offset rising costs. In 2025, it was 43 percent.
According to MMB’s Health Trends Report, 268 insurance companies in 67 markets in Asia were surveyed. “Most Asian markets will see double-digit growth for the sixth year in a row,” the report said. ’
Malaysia, Thailand, Singapore, Vietnam and Hong Kong are expected to see trends between 10.5 per cent and 15 per cent. The rising cost has also led to the increasing number of medical diseases, expensive treatment and general medicine. Cancer, circulatory and respiratory diseases accounted for the largest number of claims.
Insurance companies have highlighted high cost claimants, inefficiency and waste, and an aging population as major concerns in the next 3 years. “Mental health coverage remains limited,” the report said, adding that only 31 percent of insurance companies in Asia provide counseling. ’
Steven Yu, head of MMB Asia, said the benefit cuts could reduce costs in the short term. “However, financial risk has been passed on to employees and could impact employee retention,” he said.
Chief Yu advised employers to develop data-driven plan designs, target high-cost claimants, reduce inefficiencies and invest in preventive care and mental health. Rising insurance rates mean higher costs for employers, less protection for employees, and potential retention challenges. –Insurance Asia
