Zurich has released its long-awaited Cost of Care Volume 2 report which reveals that mental health conditions were the most prevalent in Australia in recent years, with over 12 million active cases between 2020 and 2022.
Its updated report on the growing incidence and cost of disease in Australia analyses and collates publicly available health and economic data for more than 30 major medical conditions – including mental health, cancer, respiratory and heart disease.
It compares prevalence, incidence and survival rates and calculates lifetime and out of pocket cost estimates for many conditions.
The research is designed to help financial advisers better understand the underlying costs that may be incurred and the prevalence of various common illnesses and conditions in Australia today.
Zurich says the report finds that mental health conditions – including affective disorders, anxiety and substance abuse – were the most prevalent in Australia in recent years, with over 12 million active cases between 2020 and 2022.
This is followed by Covid-19, which has seen approximately 11 million reported cases over a similar period.
Zurich says for cancer, the report finds increasing incidence estimates in eight out of 10 types since 2018, driven by:
- Prostate (+44% since 2018)
- Breast (+14%)
- Melanoma (+27%)
The insurer says that despite this, most cancer types saw marginally improved survival rates.
Lifetime Cost Estimates
It states that lifetime cost estimates vary by condition, led by:
- Spinal cord injury (between $6.8 and $12.9 million)
- Childhood cancer ($1.09 million)
- Motor Neurone Disease ($201,340)
Other highly prevalent health conditions recorded costs including $143,000 for diabetes type 1 (lifetime cost) and $41,748 for chronic kidney disease with kidney failure (average cost per year).
Matt Paterson, Chief Claims Officer, Zurich Australia & New Zealand, says there is a “…significant financial burden associated with the treatment of certain medical conditions in Australia.
…many of these are growing in prevalence against a backdrop of increased cost-of-living pressures and issues with access to insurance…
“Concerningly, many of these are growing in prevalence against a backdrop of increased cost-of-living pressures and issues with access to insurance.”
A Useful Single Source of Truth
He says that as health diagnoses and treatment continue to rapidly advance “…this analysis can serve as a useful single source of truth for insurance professionals, financial advisers and the broader community, assisting individuals and families to make informed decisions to improve their collective health and financial resilience.”
Paterson says the data will also play an important role “…in the continued delivery and ongoing evolution of wellness and rehabilitative health services offered to Zurich’s customers, particularly given the preventable nature of many of these conditions.”
In 2023, Zurich paid more than $1.53 billion (retail, direct and group insurance customers, inclusive of OnePath) in life insurance claims, with the most claimed conditions being:
- Musculoskeletal at a total of $353 million (representing 34% of all claims)
- Cancer at $473 million (21%)
- Mental health at $256 million (18%)
Zurich says Cost of Care: Volume 2 is the second iteration of the report it originally released in 2018.
It notes that in addition to updated data, the report includes new analysis for conditions including Motor Neurone Disease, Covid-19 and a section dedicated to infants and children.
The Cost of Care: Volume 2 report is available to all advisers via Zurich’s Zone education portal – click here to access.
