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Health & benefits

Health Trends 2027: Balancing cost control with benefits optimization 

Employer-provided health plans face intense pressure as projected medical trend is double-digits across most markets through 2027, with Asia at 11.7%. Underlying medical plan cost drivers include increased utilization from higher incidence of health conditions and advanced technologies. 

Our Health Trends global research, surveying 306 insurers across 69 markets, including 95 insurers in Asia, reveals the key challenges and opportunities shaping employer health and benefits strategy today — distilled into three critical trends.

Key Asia trends that will shape your health and benefits program for 2027

  1. Medical trend rate remains elevated with double digits for the sixth straight year. Looking ahead to 2028–2030, 75% of insurers expect medical trend to remain at current levels or increase further. 
  2. 87% of insurers are concerned about high-cost claimants, reflecting growing pressure from concentrated, high-impact cost drivers that broad strategies struggle to manage. 
  3. 64% of insurers expect plan sponsors to focus on moderate cost control and value optimization.

Use the Health Trends 2027 report to:

Our report shows employers how to move beyond simply cutting coverage — towards a more deliberate strategy that controls costs while optimizing the value benefits deliver to employees and the business.
View the Asia infographic
Read our latest summary report

Top Asia findings from our survey

AI cuts both ways. Most insurers (46%) expect it to lower costs through automation and fraud detection — but it can also raise them via new tech spend and higher utilization. AI isn't an automatic win; it requires employer oversight.

Cutting coverage alone isn't sustainable. 27% of insurers expect employers to shift toward optimizing value instead — spending smarter, not just less. There's no single fix; the right lever mix depends on each workforce.

Cancer is still the top cost driver for Asia and has increased in claims frequency, and advanced treatments are raising the stakes. Yet fewer than 1 in 4 plans cover key screenings. Employers should support the full journey — prevention through survivorship — not just treatment.
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      The goal is clear: to effectively manage risk and cost, improve affordability, expand protection, and widen the scope of benefits to better meet employee needs. Want to learn more?

      FAQs

      The Health Trends report is a comprehensive survey of insurers, designed as a guide to support active plan management that balances coverage adequacy and cost sustainability. The trends outlined in this report will help employers deepen dialogue with their advisors and insurers. Exploring more innovative forms of cost containment, embracing effective new treatment regimes, and ensuring that medical coverage meets the needs of the whole workforce are essential as medical costs rise and workforce needs evolve. It provides insights into potential challenges and opportunities for benefits decision-makers across a number of industries.

      The Health Trends report is essential reading for benefits decision-makers within organizations, including leaders and managers of human resources, rewards, compensation and benefits, risk, finance, insurance and C-level executives. The report is relevant to different industries and all sizes of organizations, including global HR professionals of multinational firms.

      It is a key resource for employers who want to reassess their health and benefits plans to optimise value for their business and employees as they head into 2027.

      The Health Trends report provides valuable insights, actionable steps, and strategies to effectively manage health risks and challenges within your organization. The report is designed as a guide to support active plan management that balances coverage adequacy and cost sustainability. It supports employers in developing a meaningful benefits strategy they can use to engage in dialogue with stakeholders — including advisors and insurers — to understand available options within plans and how to tailor support for the workforce.

      Cost and affordability trends: including top cost drivers in employee benefits by dollar amount (cancer, diseases of the circulatory system, musculoskeletal conditions, respiratory conditions, gastro-intestinal diseases), frequency, and top risk factors on medical cost.

      The report also covers employee health and wellbeing, design and innovation, workforce and talent, compliance and policy, technology, and data.

      The Marsh Health and Benefits report stands out for its comprehensive analysis, expert insights, and forward-thinking approach. It is developed by Marsh Health and Benefits, along with other subject matter experts in human resources, insurance, and risk consulting across Marsh, and is considered one of the leading sources of information about the medical conditions that drive claims costs and frequency, their impact, and how cost-management will ensure sustainability over the longer-term. The results are from our insurer survey, which is differentiated from others in the market by its size, geographic scope, and insurer responses.  

      To produce our Health Trends 2027 report, Marsh Health and Benefits surveyed 306 insurers across 69 markets, including 95 insurers in Asia, to explore the key trends shaping employer-provided health benefits. The survey was fielded in June and July 2026. 

      These trends are important for employers to consider as the ongoing need for cost containment is likely to continue throughout 2027. However, at the same time, employee benefits will continue to be an important element in attracting, retaining, and engaging employees in a highly competitive talent market. 

      Medical trend is the year-over-year cost increase for claims on a per-person basis made under a medical scheme. It comprises a number of factors, including medical inflation (increase in cost for services/supplies, and can be driven by currency fluctuations with respect to imported supplies); changes in treatment mix (potentially more expensive options now being administered); utilization changes (more/less of certain age groups leveraging health services); and regulatory changes. 

      Medical inflation refers to the rate at which the cost of medical services and products increases over time.

      General inflation refers to the overall increase in prices for goods and services across the economy over time, typically measured by indices such as the Consumer Price Index (CPI). It encompasses a wide range of categories including food, housing, transportation, education, and more. Medical inflation, on the other hand, is a subset of inflation that specifically relates to the rising costs of healthcare services and products only such as medical procedures and pharmaceuticals supplies.