According to Zurich’s Cost of Care study, conducted in conjunction with research partner Zest Healthcare Communications, drew on industry-wide data to present a consolidated picture of the prevalence of various illnesses and conditions.
Zurich risk strategy specialist Danielle Visser said the whitepaper represented the ‘missing link’ for many risk advice methodologies.
“Quantifying the financial and time cost of recovery is an important element of most life insurance advice methodologies, but up until now it has been hard to get accurate, up-to-date data,” Ms Visser said.
“The research available is generally from quite disparate sources, is in different formats and in many cases is out of date.
“The pace of advancement in medical diagnoses and treatments makes the currency of data even more crucial, and with this resource advisers have the latest data in one source, in a consistent, easy to follow format.”
Zurich risk strategy specialist Adam Crabbe said the research would also help advisers with their client engagement by allowing them to more easily explain the basis for their recommendations.
“By giving clients a greater understanding of the basis for advice recommendations, they are more likely to engage with – and appreciate the value of – that advice,” Mr Crabbe said.
In addition, Zurich has launched a companion tool for the research, in the form of an interactive calculator that interrogates the research data by condition, gender and age.
“Advisers and clients can use the calculator together, exploring the financial and time impact of particular health conditions,” Mr Crabbe said.
“It can make the comprehensive data from a 100-page research paper a lot more accessible for both advisers and their clients and allows the experience to be far more tailored.”
Some years ago at a Risk Store Conference in Melbourne, I saw a presentation from Dial n Angel, a home care provider. It opened my eyes to the real costs of funding care in the home, particularly when there where children at home and a working partner, but also for singles who did not want to be a burden on parents. It inspired me to ask the question of every client ever since, as an ADD-ON to the basic lump sum program. This work from Zurich is an improvement, but we still have the issue of not being able to predict WHEN care might be needed, at what LEVEL it will be needed and for what TIME FRAME. My view is it will always be a guess of some sort, notwithstanding affordability. What is more we still do not have USA style Long Term Care policies, and in the current investment market, will not have for a long time.
A very important addition to our Life insurance research methodology.
Well done Zurich Life. This is an excellent and much needed initiative for our industry. This would have been an expensive project to fund too. With ongoing funding cuts / diversion of medical statistical research which is in turn is leading to data being dated, the timing is perfect given our industry is under extreme scrutiny right now. Well done team!