"10% of Elderly Affected, No Hiding"... Dementia Insurance Covering Mild Cases [Insurance Companies Targeting Seniors]③

With the acceleration of the aging population and the rapid increase in the number of dementia patients, the 'dementia market' is also growing quickly. As awareness spreads that early diagnosis and proper management can improve quality of life, the role of insurance companies is also expanding.

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In the past, dementia was often regarded as a natural part of aging or a disease to be hidden, but social perceptions of dementia are gradually changing. Insurance companies are moving beyond simply providing financial compensation upon diagnosis to offering comprehensive dementia management services.

Rising Prevalence Expands Demand for Caregiving and Dementia Insurance

According to the Central Dementia Center at the National Medical Center, as of March this year, there are 1.05 million dementia patients aged 65 and older, exceeding 10% of the population aged 65 and above. The number of elderly dementia patients is steadily increasing and is estimated to surpass 2 million by 2038.

Currently, the insurance industry mainly consists of caregiving and dementia insurance markets. Dementia insurance provides benefits upon diagnosis, while caregiving insurance covers caregiving expenses or the hiring of caregivers. According to an analysis by the Korea Insurance Development Institute, as of 2022, about 7.99 million people were enrolled in these insurance products sold by life and non-life insurers, of which 1.61 million were elderly policyholders for whom caregiving risk coverage is important. This means only 17.9% of the population aged 65 and older are insured.

However, with the recent significant shift in social awareness of dementia, demand for enrollment is expected to increase further. Particularly noteworthy is the spread of the concept of 'mild cognitive impairment' (MCI). MCI is an intermediate stage between normal aging and dementia, and appropriate intervention at this stage can delay or prevent progression to dementia, highlighting its importance. According to the National Medical Center, there are currently about 2.27 million people aged 65 and older with MCI, with a prevalence rate exceeding 20% among the elderly population.

In response to these changes, new products continue to be launched. While products that only cover severe dementia used to dominate, now products that cover from the mild cognitive impairment stage are being introduced. In July, Samsung Life Insurance launched the 'Samsung Dementia Insurance' product, which covers all stages from dementia screening to severe dementia. It is notable for expanding coverage to include mild cognitive impairment and very mild dementia, areas that insurers had not actively entered before. This reflects changing consumer needs.

Some insurance companies are striving to secure a leading position in the dementia market. For example, KDB Life Insurance signed a memorandum of understanding (MOU) with a dementia center and obtained exclusive rights to certain dementia-related riders, aiming to specialize in the dementia insurance market. This can be interpreted as an effort to provide comprehensive dementia management services beyond simply selling insurance products.

An official from the Korea Insurance Development Institute stated, "With the rapid aging of the domestic population, dementia has become a common disease that anyone can develop, and the number of people recognized for long-term care grades is expected to continue increasing." They added, "Insurance companies should focus on expanding education, promotion, and counseling services related to elderly diseases such as dementia to enhance consumer awareness and understanding."

One-Stop Service from Prevention to Care... Complementing Policy Roles

In the rapidly growing dementia market, insurance companies are offering comprehensive services that cover not only coverage but also prevention and care, leading to expectations that they will play a complementary role in dementia policy. Insurance companies are developing new products in non-insurance areas such as dementia prevention and early detection services, insurance contract-related services, trust system utilization support services, and entry into long-term care businesses.

Recently, Samsung Life Insurance introduced the 'Samsung Together Long-Term Care Insurance,' which is the industry's first to include family caregiving coverage, unlimited hospitalization daily benefits, and Samsung Life's unique senior care services. Last year, MetLife introduced the 'Comprehensive Retirement Solution 360Future,' which provides services such as home rehabilitation exercise, nurse hospital accompaniment, and healthy meal delivery to customers who have insurance coverage of 100 million KRW or more or monthly premiums of 1 million KRW or more and receive a dementia diagnosis.

Song Yoon-ah, a research fellow at the Korea Insurance Research Institute, explained, "(The long-term care insurance available upon dementia diagnosis) provides uniform services based on equity, which limits its ability to meet diverse care needs," adding, "A public-private partnership could be considered by equipping private insurance products with dementia and caregiving riders that enhance publicness and offering incentives such as tax deductions."