The premium is the fee you pay for your health insurance coverage. Some plans require annual payments, while others allow you to pay quarterly or monthly.
You might not realize that health insurance premiums, like most everything else we buy, will inevitably increase over time. Health insurance premiums are set for each policy year, subject to an increase at each annual renewal.
Unlike national health programs, private health insurance companies are for-profit entities that exist to make money for their shareholders. Increasing your premiums is their primary tool to cope with escalating costs.
There are three reasons an insurer might increase your premium:
 AgeÂ
Your health generally declines as your age increases, so your medical costs will increase correspondingly. Your policy addresses this by raising your premiums as you get older, either annually or in increments, usually 5 years.
The rate of these increases tends to be relatively flat for younger individuals, then to rise more sharply after about age 40. This reflects the fact that our health tends to get worse with each passing year.
 Medical inflation
The projected medical trend rate for the Asia-Pacific region in 2026 is expected to be between 11.3% and 14.0%, depending on the source (Aon forecasts 11.3%; WTW forecasts 14.0%). This marks an increase from the 10% range previously seen in 2024.
For context:
This sustained high medical inflation in our region remains a primary driver for premium increases.
Top three factors insurers cite for the persistent cost pressures in the APAC region:
Increased Utilization: Higher claim frequency as people seek delayed or missed care following the pandemic.
Medical Technology Advances: The introduction of new and more expensive medical treatments, equipment, and advanced pharmaceuticals.
Chronic Diseases: Conditions like Cardiovascular Disease, Cancer/Tumor Growth, and Hypertension are consistently ranked as the top drivers of medical claims costs across the region.
Performance of the policyÂ
One measure of an insurance company’s success is to subtract claims and operating expenses from premiums collected. Positive results mean profits. However, negative results mean losses, which insurers address by adjusting premiums upwards, either on a group or individual group basis.Â
Given the accelerating medical inflation in the region, we anticipate that most annual increases for 2026 renewals will trend into the 8% to 12% range or higher, especially for plans operating in markets with particularly high cost increases like the Philippines, Singapore, and Vietnam.
There’s really nothing you can do to avoid these increases, but you can plan ahead. The age increases are published each year – if your policy uses age bands, you can look ahead to the next 5-year cutoff and see how much to expect your premium to increase. You can also expect premiums to rise in line with medical inflation. Â
Our goal is to provide you with the information you need to make informed decisions. Whether you’re exploring insurance or investments, these articles are designed to help. If you still have questions or are ready to take the next step, our team is here to assist you.
We will never sell or use your personal information for any reason other than to provide these services.
