Global PMI cost increases forecast to be 2.5 x higher than inflation

clock • 1 min read

The average cost increases for employer-sponsored private medical insurance plans globally will be 9.1 percent in 2016 - higher than the global average projected inflation rate of 3.6%, according to Aon Hewitt.

Both Latin America and the Middle East are expected to see double-digit average medical trend rates in 2016.

Meanwhile while Europe and North America will experience trend rates just below 6%.

Wil Gaitan, senior vice president and global consulting actuary at Aon Hewitt said: "We expect medical costs to continue to escalate around the world due to global population aging, overall declining health, poor lifestyle habits particularly in emerging countries, continued cost shifting from social programs and an increase in utilization of employer-sponsored health plans.

"Regardless of the underlying medical insurance system, employers around the world are continuing to experience added organizational cost and lost workforce productivity as a result of these factors."

Aon Hewitt's report also found that cardiovascular issues, cancer and gastrointestinal issues were the most prevalent onditions driving claims. 

The risk factors expected to drive future claims were mainly non-communicable diseases: high blood pressure, obesity and high cholesterol, followed by physical inactivity.

Francois Choquette, global benefits practice leader at Aon Hewitt said: "Many of the factors driving global cost increases are directly linked to modern lifestyles and their incidence can be significantly reduced if individuals modify their behaviour.

"Employers in every country need to accelerate their efforts at helping employees both understand their own health risks and motivate them to take steps to improve their health."

More on Individual Protection

The COVER Review: PMI demand, International Women's Day and a new COVER event

The COVER Review: PMI demand, International Women's Day and a new COVER event

Week commencing 03 March 2025

COVER
clock 07 March 2025 • 1 min read
Women making up a larger portion of mortgage applications

Women making up a larger portion of mortgage applications

Rise in solo female mortgage applications

Jaskeet Briah
clock 07 March 2025 • 3 min read
Financial situations have worsened for one third of adults

Financial situations have worsened for one third of adults

SJP research found

Jaskeet Briah
clock 06 March 2025 • 3 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read