IN SHORT

• As life expectancy increases around the world, so too does the incidence of dementia — impacting those diagnosed with the disease, their support network and communities. 
• In Japan and South Korea, some life insurers have introduced bespoke dementia insurance policies that cover a range of medical and non-medical costs, catering to their ageing populations.
• Ordinary life insurance may provide limited dementia cover up to age 65 or 70. ANZ insurers have an opportunity to innovate with a local solution, learning from the APAC products in market.

Modern medicine, sufficient food and better hygiene are just some of the factors that are helping us live longer. In the Asia-Pacific region, the life expectancy is 85 years in Japan, 84 years in Singapore, 83 years in Australia and South Korea and 82 years in New Zealand. But hand in hand with our longevity comes the increased incidence of diseases that typically strike in old age — and one of those is dementia.

Dementia — typically in the form of Alzheimer’s disease — is most common in people aged 65 and older. By 2050, the number of people living with dementia globally will almost triple: from 57 million to 153 million. 

Already, the numbers are staggering. Sally Phillips, head of health services at Zurich Australia and New Zealand, says dementia is currently the second-leading cause of death in Australia overall and the leading cause of death in women over the age of 75. Statistics from Dementia Australia reveal there are approximately 487,500 Australians living with dementia, and modelling indicates this figure will reach 1.1 million Australians by 2058. 

‘Younger onset dementia currently affects more than 28,000 people, which is expected to rise to more than 29,000 people in 2028 and more than 41,000 people by 2058,’ she adds.

Alzheimers New Zealand anticipates a similar jump in incidence: from 70,000 today to around 170,000 people living with dementia by 2050. It estimates the total cost of dementia to be NZ$2.5 billion, which will increase to NZ$5.9 billion by 2050.

Asia leading the way

In Japan, 29 per cent of the population is already over the age of 65 (compared with Australia and New Zealand at 17 per cent). Life insurers such as Sompo Japan Nipponkoa Himawari Life Insurance now offer bespoke dementia insurance policies to address a growing need. In addition to helping with the medical costs, these policies often also cover the non-medical costs — such as transport and search-and-rescue expenses if a person with dementia gets lost.

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