Aon projects Asia Pacific medical cost inflation slowing to 9 7 percent
Professional services firm Aon released a report forecasting Asia Pacific medical cost growth to moderate to 9 7 per cent in 2027 while outpacing general economic inflation rates
Aon plc has projected that medical costs in the Asia Pacific region will increase by 9.7% in 2027, down from 11.3% in 2026. This projected medical trend rate is still substantially higher than the forecasted APAC general inflation rate of 2.5%. After accounting for inflation, the net medical trend rate is expected to decline from 8.9% in 2026 to 7.2% in 2027.
The slowdown in medical trend growth, while still more than three times the rate of inflation, is primarily driven by China and India, which are expected to see decreases of 1.8 and 1.4 percentage points, respectively. Employers are advised to use workforce and claims data to evaluate plan design, provider networks, and financing strategies to manage rising costs while protecting the value of employee benefits.
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