Medical costs in New Zealand have surged significantly in recent times in the Asia-Pacific region and across the world too according to Aon's 2025 Global Medical Trend Rates report.
According to the report, New Zealand’s medical trend rate surged from 7.4% in 2024 to 14.5% in 2025, marking one of the sharpest year-on-year increases.
Among the countries in Asia-Pacific region, New Zealand recorded the second-highest medical trend rate in 2025, behind Kazakhstan in Central Asia at 22%. Other countries experiencing high rates were Papua New Guinea, Thailand and Vietnam.
Globally, the average medical trend rate is expected to be 10% in 2025, following a peak of 10.1% in 2024.
The report found that Asia Pacific and North America are experiencing the largest projected medical trend rate increases, 11.1% (from 9.7% in 2024) and 8.8% (from 7.6% in 2024) respectively. These were the two regions with the lowest increases from 2023 to 2024.
Aon New Zealand health leader Anson Davies said, “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.”
“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.”
“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,” said Mr Davies.