Singapore medical insurance costs to stay stable at 12% in 2025

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.