"Caregiving Costs Scarier Than Dementia"... New Contracts for Related Insurance Jump Nearly 50% in Two Years

[Financial News] New contracts for dementia and caregiving insurance have surged by nearly 50% in two years. As the country enters a super-aged society, the number of dementia patients and the caregiving burden on families are growing, rapidly expanding demand for related insurance.
According to the Korea Insurance Development Institute's insurance statistics inquiry service on the 28th, first-year premiums from new contracts for dementia and long-term care insurance across all life and non-life insurers totaled 95.83799 billion won in the first half of this year. That was an increase of 31.38686 billion won, or 48.7%, from 64.45113 billion won in the first half of 2024.
Non-life insurers posted particularly strong growth. Their first-year premiums totaled 86.53449 billion won in the first half of this year, up 29.95995 billion won, or 53.0%, from two years earlier. Total dementia and caregiving insurance premiums at life and non-life insurers also rose by 200.2 billion won, or 12.3%, to 1.8263 trillion won over the same period.
The market's growth is attributed to the rising number of dementia patients and the spread of caregiving responsibilities beyond older adults to their children's generation. Growing demand for care under the government's integrated care policy is also driving up demand for insurance.
According to a white paper from the Ministry of Health and Welfare (MOHW), the number of dementia patients aged 65 and older in South Korea is expected to reach 1.77 million by 2040. The prevalence rate is also projected to reach 10.34%. In a report released in January, the Health Insurance Research Institute forecast that medical expenses for dementia treatment among people aged 40 and older could rise to as much as 4.4 trillion won by 2030.
Insurers are expanding their coverage to target the growing market. While insurers previously limited payouts to cases involving a dementia diagnosis, they are now rolling out products that combine coverage for treatment and caregiving with long-term care and asset management.
Competition to develop special riders is also intensifying. Samsung Life Insurance, AIA Life Insurance, and PGMIC have successively secured exclusive-use rights for dementia- and caregiving-related riders as they seek to differentiate their products.
An insurance industry official said, "With the rise in dual-income households, the burden of dementia and caregiving is expanding into an issue affecting all generations," adding, "Competition to develop related insurance products and new riders will continue in line with the government's integrated care policy."
[email protected] Hong Ye-ji Reporter