Asia-Pacific medical trend rate expected to edge downwards in 2027 – but not in Singapore: Aon
In major talent hubs such as the Republic, employers will have no respite from rising benefit costs
Commercial insurance firm Aon predicts the Asia-Pacific medical trend rate will ease in 2027, but not in Singapore or Taiwan. The report anticipates the regional rate to decelerate to 9.7 percent in 2027, down from 11.3 percent this year. However, Singapore's rate is expected to climb by 14.7 percent, while Taiwan's is projected to increase by 10 percent.
The global average medical trend rate is forecasted at 9 percent. In major talent hubs like Singapore, medical benefits are considered a key tool for attracting and retaining talent, leading to higher costs. The decline in medical trend rates is primarily attributed to China and India, with rates set to drop by 1.8 and 1.4 percentage points, respectively.
Aging populations and the rise in chronic conditions are driving up healthcare utilization and costs across the region. Employers are advised to analyze workforce data, evaluate plan designs, and explore provider networks and financing strategies to manage rising costs effectively.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
