Singapore medical insurance costs to stay stable at 12% in 2025
Singapore's medical insurance costs are expected to remain stable at 12% in 2025, consistent with 2024 levels, according to WTW. This stability is attributed to an ageing population and rising chronic diseases, alongside high pharmacy costs and inflation challenges. In the APAC region, medical inflation is projected to increase to 12.3% in 2025, with 76% of insurers anticipating higher medical trends and 62% expecting increased demand for healthcare services over the next three years.
Driven by ageing population and rise in diseases.
Singapore’s medical insurance costs are projected to remain stable at 12% in 2025, consistent with 2024 levels, WTW said.
The firm noted high pharmacy costs are driven by an ageing population, a rise in chronic diseases, the high cost of advanced therapies and biologics, preferences for branded over generic medication, and supply chain and inflation challenges.
Meanwhile, APAC is expected to lead global medical inflation with 12.3% increase in 2025 from 11.9% this year.
More than three-quarters (76%) of insurers in APAC anticipate higher or significantly higher medical trends over the next three years.
Demand for medical care is expected to stay high, with 62% of insurers in the region predicting increased or significantly higher healthcare service demand over the next three years.