Several global and regional factors, including medical inflation, increased private health insurance usage, and applicants’ personal factors, are driving up the price of international health insurance premiums for expats.

As a trusted insurance brokerage with 25 years of experience, Pacific Prime Hong Kong has summarized the core drivers behind the hikes in premiums of international health insurance.

Medical Inflation in Asia

Medical costs in Asia—including hospital fees, surgeries, medication, and specialist services—are projected to rise by 12.3% in 2025, the highest inflation rate among all regions worldwide.

While healthcare inflation often correlates with the general inflation trends, some specific drivers behind medical cost increases in Asia include:

Increased Demand for Private Healthcare

Unhealthy lifestyle habits have led to a global rise in chronic conditions and increased use of medical services. At the same time, the decline in public healthcare quality in many countries is driving more people toward private healthcare options.

Together, these factors contribute to rising healthcare costs, which are reflected in higher insurance premiums.

In Hong Kong, an aging population and rising life expectancy continue to increase overall demand for healthcare. Although the city operates a dual healthcare system, public hospitals often experience long waiting times due to high patient volumes.

To relieve pressure on the public sector, the government actively promotes the use of private healthcare services. As a result, private care has become the preferred choice for those who can afford it.

Age

As policyholders enter higher age brackets, premiums tend to increase to cover the higher risks of accidents or developing chronic conditions such as cardiovascular diseases, cancer, and diabetes.

In addition, plans that cover pre-existing conditions or older applicants have higher premiums.

Plan Structure

The structure of each international health insurance plan significantly influences its costs. These include:

Find the Best Plan That Suits Your Budget

Premium prices for international health insurance are influenced by several factors, including external market trends and insurers' risk management strategies aimed at maintaining financial stability and sustainable operations.