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About the report

The Cost of Health Insurance Report 2020-2021 is based on pricing data from 100 countries, which is ranked according to average individual and family health insurance premiums. To better understand these pricing trends, the report also looks at the key drivers shaping health insurance costs globally.
In Latin America, we have seen higher increases in IPMI premiums than the global average. We attribute this to the policyholders' inclination to opt for high-cost healthcare providers, a tendency to seek treatment in the US, and fraudulent activities (i.e. non-disclosure of pre-existing conditions and fraudulent claims by healthcare providers and policyholders).
The traditional distribution channels have also contributed to a higher cost of health insurance. The effect of COVID-19 across the region is still uncertain as on one hand, claims have lowered as people stay at home, but on the other, we could see a significant boom in claims when things become more stable."
Marco Vuarambon,
Chief Executive Officer for Latin America at Pacific Prime Mexico

What is the cost of international
health insurance globally?

Overall, the average cost of international health insurance declined globally. With that said, the US remains the country with the highest cost of individual and family health insurance. In addition to this, another notable trend is that Hong Kong and Singapore surpassed Canada to claim the second and third spots, respectively.
Top 5 most expensive countries for individual
and family health insurance in the world
Average individual premium in 2020 (USD)
1. The United States - $7,703
2. Hong Kong - $6,146
3. Singapore - $5,677
4. Canada - $5,230
5. Dubai - $5,207
Average family premium in 2020 (USD)
1. The United States - $21,817
2. Hong Kong - $17,425
3. Singapore - $15,964
4. Dubai - $15,377
5. Israel - $13,614

What are the key drivers shaping
health insurance in Mexico?

Claims in the first year of the health insurance plan enrollment
Claims in the first year of the health insurance plan enrollment
Compared to other countries, policyholders in Mexico are more likely to make claims for reimbursement in the first year of their plan enrollment. As such, insurers in the region adjust their IPMI premiums to reflect this.
Higher cost of healthcare for policyholders on international health plans
Higher cost of healthcare for policyholders on international health plans
Healthcare providers in Mexico tend to overcharge policyholders who have international health insurance plans, as they believe the insurer will be able to pay the higher costs. However, insurers take these costs into consideration when setting IPMI premiums.
Dishonest practice on behalf of stakeholders
Dishonest practice on behalf of stakeholders
Other forms of dishonest practice are also common in Mexico, resulting in health insurance fraud and pushing up IPMI premiums. For instance, healthcare providers may misrepresent the consultation/treatment to guarantee an insurance payout.
Use of Latin America plans in the United States
Use of Latin America plans in the United States
Latin America-based plans with worldwide coverage may also be used extensively in the US, where healthcare costs are notoriously expensive. This tends to drive up the IPMI premiums for the plans at renewal time.

What are the key drivers shaping
health insurance premiums globally?

Changing demand for care
Changing demand for care
There has been a rise in healthcare utilization and expenditure as a result of the COVID-19 pandemic, especially when it comes to telemedicine and virtual healthcare solutions.
Cost of care
Cost of care
Healthcare costs have exceeded general inflation owing to various cost factors like higher drug prices, more chronic illnesses due to bad lifestyle habits, an aging population, etc.
Increased regulation
Increased regulation
Insurers have to adhere to various regulations across jurisdictions such as tax reporting, anti-money laundering, consumer protection, and data privacy. As such, many are unable to handle the mounting costs of compliance.
Continued challenges related to fraud
Continued challenges related to fraud
A major challenge for insurers are fraudulent claims made by healthcare providers and policyholders. This results in higher IPMI premiums and out-of-pocket expenses, along with reduced benefits or coverage.
The rise of insurtech
The rise of insurtech
Digital technology and innovation in the insurance sector have been accelerated, largely due to the impacts of the COVID-19 pandemic. Insurers are catching up with insurtech and this will have an impact on IPMI in the future.

An in-depth look at
our key findings

The Americas remains a dominant region in the top 20 most expensive countries
The Americas remains a dominant region in the top 20 most expensive countries
Our ranking table shows that 12 out of 20 countries with the highest average IPMI premiums are located in the Americas. As expected, the US takes the number one spot due to its expensive cost of healthcare, despite a significant decrease in prices this year.
 Latin America may experience an increase in premiums in the next 5 years
Latin America may experience an increase in premiums in the next 5 years
Latin America offers extensive mental health coverage when compared to other regions. Due to the fact that behavioral and mental health conditions are the third priciest condition, experts forecast a rise in IPMI premiums in the coming 5 years. Aside from this, each country in the region has different healthcare trends.
 Hong Kong has reclaimed its place as the second most expensive location in the world for health insurance
Hong Kong has reclaimed its place as the second most expensive location in the world for health insurance
Whether it’s overutilization of health insurance, a rapidly aging population, or the COVID-19 pandemic, there are several cost-driving factors for IPMI premiums in Hong Kong, that have resulted in the city-state reclaiming its spot as the second most expensive location in the world for both individual and family plans.
 Singapore is the second most expensive location in Asia for health insurance
Singapore is the second most expensive location in Asia for health insurance
In Singapore, we are also witnessing a rise in the cost of health insurance due to factors, such as: inflated medical charges, overuse of insurance, an aging population, and poor lifestyle choice. So much so that the city-state takes the spot as the second most expensive location in Asia for IPMI premiums.
 China's premiums are going through a correction after years of increase
China's premiums are going through a correction after years of increase
IPMI premiums in China have seen a decrease, as demand remains sluggish in the world’s second-biggest economy, in the face of the COVID-19 pandemic. On the digitalization front, insurers in China are turning to technology and innovation, which is changing the country’s insurance landscape.
 A number of countries' premiums have decreased in 2020
A number of countries' premiums have decreased in 2020
Based on our comparison of IPMI premiums in 2019 and 2020, a whopping 36 countries saw a decrease in average IPMI premiums, in contrast to the trends in previous years. This is due to the COVID-19 pandemic’s impact on healthcare systems the world over.
 Insurers are taking a closer look at their regional pricing strategies
Insurers are taking a closer look at their regional pricing strategies
In order to strike the right balance between offering high service quality and maintaining operational sustainability, as well as to prepare for similar crises in the future, insurers are reevaluating their pricing strategies in each region.

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