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Decoding Medical Inflation: Unveiling the Truth Behind Rising Costs - Plan Ahead for a Secure Future

4-min read
Have you ever considered that the longer we live, the more medical care we are likely to need and the more this care will cost? In recent years, the increase in medical costs in Hong Kong has remained persistently high. In fact, the cost of medical treatments has increased by over 60% in the past six years¹ alone. Let's break down the reasons behind the medical inflationary trend.

1. Population Aging: The Health Challenges Behind Longevity

With an average life expectancy of 83 years for men and 88 years for women², Hong Kong is one of the longest-living regions globally. However, living longer might come with increasing health challenges. As of 2024, 23.9%³ of the population in Hong Kong was aged 65 or older. This aging population is increasing the demand for healthcare and thus driving up prices for medical care and treatment.

2. Post-Pandemic Era: Surging Medical Demand and Respiratory Disease Outbreaks

Post-pandemic, the rebound in delayed non-urgent medical requests has led to a surge in overall healthcare demand. Additionally, with COVID-19 becoming an endemic seasonal disease4 alongside recurring waves of influenza and diseases from the respiratory syncytial virus (RSV), medical insurance claims for respiratory diseases have risen significantly. In 2024, the total claim amounts for respiratory diseases increased by 28%5 as compared to 2023.

3. New Medical Technology: Bringing Hope, But Raising Costs

Advanced medical technologies and equipment continue to emerge, offering new treatment possibilities for patients, but their high costs contribute further to the inflation of medical treatment costs. For example, the innovative new CAR-T cell therapy for cancer can cost up to HK$2 million6. Even for cardiac treatments, the new generation of bioresorbable vascular scaffolds (BVS) cost about twice as much as traditional stents, approximately HK$30,0007.

4. Youthification of Diseases: Early Planning Is Essential

Diseases once associated with older ages are now appearing among younger individuals. Globally, cancer cases among those under 50 have surged by 80% over the past 30 years8, with tracheal cancer and prostate cancer seeing the fastest-growing incidence rates8. In Hong Kong, 1 in 4 men and 1 in 5 women will develop cancer9. Lung cancer, colorectal cancer, and breast cancer are the most common cancers10.

With medical costs continuously rising, securing healthcare insurance protection early is crucial. Waiting until your health deteriorates to get insured may lead to higher premiums, limited coverage, or even denial of coverage. As the most popular insurance brand in Hong Kong11, AIA is committed to providing customers with innovative and diverse products, continuously delivering high quality medical protection. In 2024, one in every three Hong Kong residents with individual medical insurance was an AIA customer12. Let us safeguard your health and together help you live Healthier, Longer, Better Lives.

AIA will continue to uphold its commitment to delivering tangible support to customers.

1"6 years" refers to data from 2019 to 2024. Source: Medical cost inflation rates are calculated using compound growth based on data from WTW's 2021–2025 Global Medical Trends Survey Report.。
2Source: Census and Statistics Department of Hong Kong, Statistics and You. (2024)
3Source: Hong Kong 01 - "Super-Aging Society: 23.9% of Hong Kong's Population Are Seniors, This District on Hong Kong Island is the Oldest, Median Age in 5 Districts Reaches 50s" (2025).
4Source: HK Government Press Releases - DH urges high-risk individuals to receive COVID-19 vaccines as soon as possible as COVID-19 activity hits one-year high in Hong Kong (2025).
5Source: AIA internal data.
6Source: Sing Tao Headline - 27-Year-Old Hong Kong Woman Diagnosed with Stage 4 Lymphoma Exhausts Savings, Hopes to Raise HK$2 Million for Life-Saving Treatment (2023) 
7Source: Sing Tao Daily - Dissolvable Coronary Stent Naturally Absorbed Within Three Years (2015).
8Source: Sing Tao Daily - "Global Cancer Cases Among Those Under 50 Surge by 80%" (2023).
9Source: Hospital Authority of Hong Kong - "Overview of 2022 Hong Kong Cancer Statistics" (2024).
10Source: Hong Kong Cancer Registry - 2002 Top Ten Cancers (2024).
11According to YouGov, an international research and data analytics company, Hong Kong BrandIndex 2016-2024. AIA has been the Top Insurance Brand in Brand Consideration and Most Likely to Purchase in Hong Kong for nine consecutive years since 2016.
12Based on Table 7.1a in the Thematic Household Survey Report No. 78 published by the Census and Statistics Department of the HKSAR Government in January 2024, and AIA Hong Kong's internal figures.

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