Zurich pays over $1.53b in life insurance claims in 2023

Lifetime cost estimates for spinal cord injury ranged between $6.8m and $12.9m.

In 2023, Zurich paid over $1.53b in life insurance claims, with musculoskeletal conditions accounting for $353m (34% of all claims), cancer for $473m (21%), and mental health for $256m (18%).

“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,” Matt Paterson, Chief Claims Officer, Zurich Australia & New Zealand said in a media release.

Zurich Financial Services Australia’s (Zurich) ‘Cost of Care’ report, analyses publicly available health and economic data for over 30 major medical conditions, including mental health, cancer, respiratory and heart diseases. It compares prevalence, incidence, and survival rates, and calculates lifetime and out-of-pocket cost estimates for many conditions.

Mental health conditions, such as affective disorders, anxiety, and substance abuse, were found to be the most prevalent in recent years, with over 12 million active cases between 2020 and 2022. COVID-19 followed closely, with approximately 11 million reported cases over a similar period.

Regarding cancer, the report noted an increase in incidence estimates for eight out of ten types since 2018. Prostate cancer saw a 44% increase, breast cancer 14%, and melanoma 27%. However, most cancer types saw slightly improved survival rates.

The report also provides lifetime cost estimates for various conditions, with spinal cord injury leading at between $6.8m and $12.9m, followed by childhood cancer at $1.09m, and Motor Neurone Disease at $201,340. 

Other conditions include $143,000 for type 1 diabetes (lifetime cost) and $41,748 per year for chronic kidney disease with kidney failure.

Matt Paterson, Chief Claims Officer for Zurich Australia & New Zealand, highlighted the significant financial burden associated with treating these medical conditions. He emphasised the report’s role as a reliable resource for insurance professionals, financial advisers, and the community, helping individuals and families make informed decisions to improve health and financial resilience.

‘Cost of Care: Volume 2’ is an update to the original 2018 report, providing a new analysis of Motor Neurone Disease, COVID-19, and a section dedicated to infants and children.