New Zealand’s Medical Costs Surge Compared To Countries In The Asia-Pacific Region And Worldwide, Aon Report Finds

AUCKLAND, March 12, 2025 – Aon plc (NYSE: AON), a leading global professional services firm, has released its 2025 Global Medical Trend Rates Report which found medical costs in New Zealand have seen some of the sharpest increases in the Asia-Pacific (APAC) region and worldwide.

The medical trend rate represents the percentage increase in medical plan costs per employee — both insured and self-insured — over the past year. The report provides medical trend rate forecasts for 112 countries and locations worldwide.

According to the report, New Zealand’s medical trend rate surged from 7.4 percent in 2024 to 14.5 percent in 2025, marking one of the sharpest year-on-year increases. Among countries in APAC, New Zealand recorded the second-highest medical trend rate in 2025, behind Kazakhstan in Central Asia at 22 percent. Other countries experiencing high rates were Papua New Guinea, Thailand and Vietnam.

Globally, the average medical trend rate is expected to be 10 percent in 2025, following a peak of 10.1 percent in 2024 — the highest forecasted increase in the last decade.

The report found that APAC and North America are experiencing the largest projected medical trend rate increases, 11.1 percent (from 9.7 percent in 2024) and 8.8 percent (from 7.6 percent in 2024) respectively. Notably, these were the two regions with the lowest increases from 2023 to 2024.

“In 2024, there was a larger-than-expected rise in claimable events and procedures, which had a sizable effect on the industry. The long-awaited impact of COVID-19 was also finally felt, as many policyholders caught up on delayed healthcare from 2020 to 2023,” said Anson Davies, health leader for New Zealand at Aon. “General inflation has also significantly impacted the cost of medical care, with New Zealand experiencing high levels of inflation across 2023-24. This, coupled with sustained pressure on the public healthcare system, has led more people to seek private healthcare, in turn contributing to medical inflation.”

Looking ahead, Davies suggested, “while current trends remain concerning, a gradual plateau could occur as general inflation recedes, and elective procedures stabilise.”

The report highlights key global drivers of rising medical trend rates, which are:

• Increased demand for prescription and specialty medications
• Innovations in medical technology
• Geopolitical factors impacting supply chains and healthcare costs
• Rising support for emotional health, with stress management and wellbeing initiatives becoming a priority

Wellbeing programs, plan design changes, alternative financing and utilising data and analytics are among the top strategies employers are deploying to mitigate rising costs while promoting a healthy workforce.

“Taking into account these rising medical trends, it's vital that employers, policymakers and insurers collaborate to find sustainable healthcare solutions that balance quality care and cost,” concluded Davies.

About the report:

The report is based on insights from 112 Aon offices that broker, administer or advise on employer-sponsored medical plans in each of the countries covered in the report. The findings reflect the medical trend expectations of Aon professionals based on their interactions with clients and carriers represented in the portfolio of the firm’s medical plan business in each location.

As employer-sponsored medical plans become a larger part of total rewards spend and pressure mounts to accurately forecast and manage costs, this report is a valuable resource for organisations to plan global budgets and benefits strategies for 2025 and beyond.

Read Aon’s 2025 Global Medical Trend Rates Report.

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

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