Main factors affecting premium prices in health insurance programs.
- Medical inflation
- The continuous increase in the cost of medical services, medications, and specialized treatments.
- Higher use of health services
- After the pandemic, insured individuals are making more visits, diagnostic tests, and procedures.
- Increase in labor costs in the healthcare sector
- Increase in salaries for doctors and nurses, as well as a shortage of specialized personnel.
- Regulatory requirements and minimum coverage
- New regulations in several countries require more extensive health benefits, leading to higher premiums.
- Exchange rate fluctuations
- Especially important in international coverage where contracts are priced in dollars or other strong currencies.
- Increase in reinsurance costs
- Insurance companies pass on the increases from reinsurers to the final prices of the products.
- Limited competition
- Entry of fewer new companies into the market and the exit of certain players, especially in markets with strict regulations.
| Year | Global Avg | North America | Europe | Asia-Pacific | Middle East | Latin America | Africa |
|---|---|---|---|---|---|---|---|
| 2019 | 7.2% | 5.6% | 5.6% | 7.5% | 8.7% | 10.8% | 8.7% |
| 2020 | 5.9% | 2.8% | 4.2% | 6.2% | 8.7% | 9.0% | 8.7% |
| 2021 | 8.1% | 7.1% | 5.8% | 8.5% | 10.0% | 13.6% | 10.0% |
| 2022 | 8.8% | 9.4% | 8.0% | 6.9% | 10.5% | 18.2% | 10.5% |
| 2023 | 10.0% | 6.5% | 8.6% | 10.2% | 11.5% | 18.9% | 11.5% |
| 2024 | 9.5% | 7.4% | 9.4% | 11.8% | 8.5% | 9.6% | 8.5% |
| 2025 | 10.0% | 9.4% | 8.3% | 13.2% | 10.3% | 10.5% | 10.3% |
| 2026 | 10.3% | 9.2% | 8.2% | 14.0% | 11.3% | 11.9% | 11.3% |
Source: WTW Global Medical Trends Survey (gross). From 2024, markets with volatile inflation (Argentina, Türkiye, Egypt, Nigeria, Zimbabwe) are excluded. Last updated 22/07/2026.
Greece has stayed almost consistently below the European average.
"Net medical inflation" = the rise in health costs ABOVE general inflation (CPI). The bold line is the total (gross) — visually, net + CPI adds up to it. It isolates how much healthcare itself is getting more expensive, separate from the economy-wide cost of living.
What this means for you
Your health plan premium rises almost every year — even if you made no claims at all. This isn't (only) about your insurer: it's the result of two separate factors — medical inflation, shown in the table above (the market-wide rise in health costs), and age-band progression (every year you get older, you move into a higher premium age bracket, independent of medical inflation). The actual increase you see on your own policy is usually the sum of both.
In practice, this means a health plan left unreviewed gradually becomes more expensive while offering the same coverage — so it's worth periodically checking whether your plan still offers the best coverage-to-cost balance.
Good sign: if your own policy's increase is roughly in line with the general index in the table plus your expected age-band step-up, that's usually normal and nothing to worry about. But this doesn't mean no check is needed — it's always worth confirming that your policy's terms and coverage remain adequate for current medical standards (new treatments, tests, medications), regardless of how "reasonable" the increase looks.
Illustrative example
Based on the average annual medical inflation of recent years (~10%), here's an illustrative 5-year projection for a premium — from medical inflation alone, not counting the additional age-band increase:
| Today's premium | In 5 years (~10%/yr) |
|---|---|
| €1,500 / year | ≈ €2,416 / year |
| €2,500 / year | ≈ €4,026 / year |
| €4,000 / year | ≈ €6,442 / year |
Illustrative calculation at a flat 10%/year compound rate, medical inflation only — it does not include the insured's additional age-band increase, and is not a quote or commitment from any specific insurer. Actual increases depend on the plan, age, insurer, and country of cover.
Frequently asked questions
Why does my premium rise every year even if I made no claims?
Because the increase isn't tied only to your own usage, but to the overall cost of healthcare in the market (new treatments, medications, healthcare staff wages) — this is "medical inflation," and it affects every insured person regardless of individual usage.
Why does the increase seem bigger as I get older?
Because most health plans are priced in age bands (e.g. 40-44, 45-49, etc.). When you move into the next band, your premium rises further from that age-band step — independent of market-wide medical inflation. The two factors add up: the yearly increase you see = medical inflation + age-band increase.
What's the difference between "gross" and "net" medical inflation?
"Gross" is the total rise in health costs. "Net" is that same rise minus general inflation (CPI) — it shows how much more expensive healthcare itself is getting, separate from the economy-wide cost of living.
Why does North America see much bigger increases than Europe?
Mainly due to the cost of new drugs/treatments (e.g. GLP-1s), the largely private nature of the health system, and the absence of a strong public system absorbing part of the cost — something European national health systems partly do.
Can I lower my premium?
Often yes — by adjusting coverage, adding co-pay, switching plans, or switching insurer. The right way to look at it is through a comparative review — not just the amount, but what it actually covers.
How often is this page's data updated?
Once a year, based on the newest edition of the WTW Global Medical Trends Survey — the update happens automatically.
Want to see how you can protect yourself from future increases?
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