Aon plc has released its 2026 Global Medical Trend Rates Report, indicating that employee medical plan costs in the Asia Pacific (APAC) region are expected to stabilise with an 11.3% increase. This follows two years of significant rises. Key markets such as China, India, Singapore, the Philippines, and Vietnam are forecasting lower increases than in 2025. The global average medical trend rate is projected at 9.8%.
Medical trend rates, which represent the annual percentage increase in medical plan costs per employee, are crucial for organisations to budget and adapt their benefits strategies. Tim Dwyer, head of Human Capital for APAC at Aon, noted, “The challenge and opportunity for employers lies in moving from reactive cost control to proactive health strategy.”
Approximately one third of APAC markets anticipate a slight decrease in trend rates, driven by moderated utilisation and wellbeing initiatives. However, the remaining two thirds face upward pressure due to chronic disease burdens and increased healthcare utilisation. Cardiovascular diseases, gastrointestinal conditions, and cancer are the primary medical conditions influencing costs.
Employers are responding by adopting flexible benefit plans and wellbeing programmes. Alan Oates, head of global benefits for APAC at Aon, emphasised the importance of leveraging data and partnering with insurers to support a healthier workforce.
The report is based on insights from over 100 Aon offices, reflecting expectations from interactions with clients and carriers across the region.
