International Private Medical Insurance (IPMI) provides essential global healthcare cover for expatriates – individuals, families, marine crew, pilots and cabin crew, and internationally mobile professionals – Nomads, that live outside their home country for 12 months or more. Yet, policyholders are often surprised when their premiums rise year after year—even if they haven’t made any claims. One of the primary drivers behind these increases is medical inflation.
What Is Medical Inflation?
Medical inflation refers to the annual rise in the cost of healthcare procedures and services, often outpacing general economic inflation. It includes the increasing prices of hospital stays, outpatient procedures, consultations, pharmaceuticals, diagnostics, and medical technology. In the context of IPMI, which covers individuals globally and across many healthcare systems, medical inflation reflects the varying and generally increasing prices of healthcare interventions across countries. In addition, insured member behaviour also can negatively impact premiums.
The operating room is where miracles happen, thanks to dedicated surgeons. Yet, the increasing treatment costs are a challenge that cannot be ignored, influencing IPMI insurance premiums across the world. #SurgicalExcellence #HealthcareCosts #InsuranceAwareness
How Fast Does Medical Inflation Rise?
Unlike general inflation, which might rise at 2–3% per year, medical inflation often ranges from 9% to 12% or higher in many parts of the world. Insurers aim to keep their medical inflation below 10%. For 2025, it is projected that global inflation rate will be10.4% and in Asia Pacific – 12.3%. Medical inflation in Indonesia is projected to rise to 19.4%, Philippines – 8.3%, Malaysia – 16.4% and Thailand – 14.2%.
Why Are Hospitals Charging More?
Hospitals and private medical facilities adjust their pricing annually, and these increases are rarely minor. The rising costs stem from a variety of factors: investments in advanced diagnostic tools and surgical equipment, higher salaries for specialised medical staff, increasing administrative overheads, and the growing global demand for private healthcare. As their costs rise, so do the costs of medical treatments.
How Does This Affect My Premiums?
When members submit claims, insurers must absorb these elevated medical costs. To remain financially stable and continue honouring future claims, insurers respond by adjusting premiums upward for all policyholders—not just those who claimed. Even if you haven’t needed care during a policy year, you’re still impacted because your insurer is covering more expensive treatments overall.
How Global Albatross Helps You Manage These Increases?
This is where having a knowledgeable and proactive insurance advisor becomes invaluable. At Global Albatross, we don’t just help you buy an IPMI policy—we help you manage it year after year. Your plan design and your level of cover can also have a negative or positive impact on your renewal premium. Your advisor understands how medical inflation impacts premiums and works closely with you and your insurer to help mitigate those effects. From renewal negotiations and benefit reviews to benchmarking your policy against market alternatives, we ensure your coverage stays comprehensive while keeping costs as controlled as possible.
Take Control of Your Cover with Global Albatross
If you’re finding premium increases hard to understand—or harder to afford—we’re here to help. Our expert team offers personalised support and strategic advice to ensure you continue receiving value for the premiums you pay.
Contact us today to take control of your international medical insurance and protect yourself from the full impact of medical inflation.
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