The research found that the trend in medical rates in Latin America rebounded in 2021 (10.2%) from the 2020 lows caused by the pandemic. This trend is expected to continue, with the rate for the region in 2022 expected to be 9.4% similar to the global rate (9.5%).

Three-quarters (75%) of insurers in the region say that medical claims activity is trending upward, and two in five (41%) report that claims activity is higher than pre-pandemic levels.

2. Covid-19 is having an impact on claims activity

For Latin America and the Caribbean, covid-19 is now the highest cause of claims, both by dollar amount and frequency. However, its impact is almost certainly underreported as insurers have struggled to update their systems to fully capture data on a condition that was unknown before the end of 2019.

If the crisis continues, increases in life insurance claims could lead to higher premiums, stricter underwriting practices or exclusions.

For example, in Latin America and the Caribbean, 85% of insurers reported seeing higher life insurance claims, especially in Colombia, Mexico and Panama.

3. Prevention and self-care are necessary to mitigate health risks

Metabolic and cardiovascular risk is the number one risk factor driving company-sponsored group medical costs.

Cancer and circulatory diseases were the top drivers of medical plan claims for insurers. To combat these chronic diseases, companies can explore how to integrate self-care products into benefit plans. Nearly one in ten insurers (8%) cover or provide home test kits, such as blood tests for diabetes.

4. Health equity in health plans is a growing priority

Insurers are making changes to facilitate more inclusive health plan designs. For example, 30% are reviewing medical networks to ensure provider diversity. This will impact the employee experience, as individuals will be able to more easily choose to see a doctor of the same ethnicity and gender.