11 June 2024

Zurich Financial Services Australia (Zurich) today released updated analysis on the growing incidence and cost of disease in Australia.

The report, ‘Cost of Care’, analyses and collates publicly available health and economic data for more than 30 major medical conditions – including: mental health; cancer; respiratory and heart disease – comparing prevalence, incidence & survival rates and calculating lifetime & out of pocket cost estimates for many conditions.

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.

For cancer, the report finds increasing incidence estimates in eight out of 10 types since 2018, driven by: prostate (+44 per cent since 2018); breast (+14 per cent) and melanoma (+27 per cent). Despite this, most cancer types saw marginally improved survival rates.

Lifetime cost estimates vary by condition, led by spinal cord injury (between $6.8 million and $12.9 million), childhood cancer ($1.09 million) and 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 said: “There is a significant financial burden associated with the treatment of certain medical conditions in Australia. Concerningly, many of these are growing in prevalence against a backdrop of increased cost-of-living pressures and issues with access to insurance.”

“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.”

“Likewise, this data will 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,” Mr Paterson said.

In 2023, Zurich paid more than $1.53 billion* in life insurance claims, with the most claimed conditions being: musculoskeletal at a total of $353 million (representing 34 per cent of all claims); cancer at $473 million (21 per cent); and mental health at $256 million (18 per cent).

‘Cost of Care: Volume 2’ is the second iteration of the report originally released by Zurich in 2018. 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.

-ENDS-
 

*Retail, direct and group insurance customers, inclusive of OnePath