• China, India, Singapore, the Philippines and Vietnam projecting lower increases than previous year
• Cardiovascular diseases, gastrointestinal conditions and cancer are top medical conditions that are expected to drive the medical plan costs

SINGAPORE - Media OutReach Newswire - 15 October 2025 - Aon plc (NYSE: AON), a leading global professional services firm, today released its 2026 Global Medical Trend Rates Report, projecting an 11.3 percent rise in Asia Pacific (APAC) employee medical plan costs, signalling stabilisation of medical plan costs after two years of steep increases. The global average medical trend rate is expected to be 9.8 percent. Key APAC markets like China, India, Singapore, the Philippines and Vietnam are forecasting lower medical trend rate increases than in 2025. Medical trend rates represent the annual percentage increase in medical plan costs per employee, both insured and self-insured. These figures help organisations budget and adapt their benefits strategies to ensure sustainability in a rapidly evolving healthcare landscape. "The Asia Pacific region continues to face double-digit medical trend rates, reflecting both the resilience of healthcare demand and the need for medical insurers to return to profitability in order to deliver sustainable healthcare coverage," said Tim Dwyer, head of Human Capital for APAC, Aon. "The challenge and opportunity for employers lies in moving from reactive cost control to proactive health strategy. As employers across the region navigate workforce transformation, building resilient and sustainable employee benefits programs will be critical to managing the wellbeing of their workforces." Key Findings for APAC:

• Around one third of APAC markets — including China, Singapore, the Philippines, Vietnam and India — expect a slight decrease in trend rates, driven by moderated utilisation and wellbeing initiatives.
• Prescription and specialty medications, innovations in medical technology and geopolitical factors, continue to have a significant impact.
• The remaining two thirds face upward pressure from chronic disease burden, increased healthcare utilisation and adoption of technological advancements.

2025		2026
Annual General Inflation Rate	Annual Medical Trend Rates(Gross)	Annual General Inflation Rate	Annual Medical Trend Rates (Gross)
Asia-Pacific	2.8	11.1	2.4	11.3
Australia	3.0	5.1	3.5	5.2
Bangladesh	6.1	10.0	5.2	10.0
China	2.0	8.0	0.6	7.8
Hong Kong	2.3	8.0	2.2	9.0
India	4.2	13.0	4.1	11.5
Indonesia	2.6	16.2	2.5	16.9
Japan	2.1	0.9	1.7	2.7
Kazakhstan	7.0	29.0	9.4	29.0
Malaysia	2.5	15.0	2.2	16.0
New Zealand	2.5	17.0	2.0	18.0
Pakistan	12.7	n/a	7.7	23.5
Papua New Guinea	4.8	12.0	4.6	15.0
Philippines	3.0	15.0	2.9	14.0
Singapore	2.5	14.0	1.5	13.0
South Korea	2.0	10.0	1.8	11.5
Sri Lanka	n/a	n/a	n/a	6.5
Taiwan	1.6	n/a	1.6	8.0
Thailand	1.2	14.3	0.9	14.8
Vietnam	3.4	12.9	2.5	12.2

Conditions Behind the Trend Rate The leading medical conditions expected to influence costs in 2026 in APAC remain largely consistent with the conditions of 2025.

• Cardiovascular Disease: Disorders of the heart and blood vessels and high blood pressure continue to be the primary cost driver, with the greatest impact on claims across APAC.
• Gastrointestinal Conditions: Issues such as gallbladder stones, infections, acute appendicitis, liver diseases and...