Produced By: Ensombl
In recent years, the financial advice community has come to recognize an area of risk that is both omnipresent and often underestimated: the real costs—financial, emotional, and social—of experiencing a major health event. “Cost of Care,” a research initiative undertaken by Zurich in Australia, attempts to quantify, explain, and contextualize the wide-ranging impact that health issues such as cancers, heart attacks, strokes, and other serious illnesses can have on individuals, their families, and their broader support networks. Over two major editions (released in 2018 and again in 2024), Zurich’s work has addressed both the probability of encountering a health event and the associated lifetime and out-of-pocket expenses that can arise.
In a podcast discussion hosted by James Wrigley, financial adviser and industry commentator, with guest speaker and Zurich representative, Adam Crabbe, the core findings of the Cost of Care research came to life. Crabbe provided a clear overview of what Cost of Care is, the methodology behind it, and how financial advisers can best utilize it for the benefit of clients, including those who may not have an immediate focus on life insurance or critical illness cover. Notably, the conversation highlighted themes of professionalism and ethics: the way advisers can maintain the highest standards of conduct, prioritize client well-being, and even participate in pro bono and philanthropic efforts that reinforce the social good inherent in ethical financial planning.
This article will examine the key insights from the podcast and place them into a broader professional and ethical context. It will explore how the Cost of Care is relevant not only to advisers who specialize in risk insurance, but also to those who serve a broader range of client needs—including wealth creation, retirement planning, estate planning, and beyond. Through around 2,000 words of analysis, we will delve into how professional advisers can incorporate Cost of Care data into their practice, use it to educate clients on the risks of financial shortfalls due to health events, and act ethically by advocating for client interests—even in tough circumstances.
Cost of Care was initially published by Zurich in 2018 (Volume One) in response to a gap that advisers had repeatedly encountered: scarce, consolidated data on the financial impact of serious illnesses such as cancer, stroke, and heart conditions. While one might expect government or private insurance organizations to hold clear data on out-of-pocket costs and the financial trajectory of these illnesses, in practice there was little user-friendly material that would help advisers incorporate these insights into client conversations.
In that first edition, the Zurich team brought together information from a range of sources, such as government bodies, health foundations, charitable organizations, and academic institutions, to build a multidimensional view of what happens to a person’s finances when major illness strikes. As Crabbe explains, “We really tried to differentiate from any product.” Rather than making it solely about Zurich’s claims experience, the paper focused on ordinary Australians, both insured and uninsured, in order to show the community-wide impact of serious illnesses. This approach ensured that the document was not merely a promotional tool for a particular policy but rather an educational resource that advisers could trust and utilize professionally.
Volume One topped 100 pages, featuring data points on mortality, morbidity, and costs for the common “trauma-type” illnesses that drive many insurance claims. The team realized, however, that more detail would be beneficial—especially granularity on out-of-pocket expenses that many households were incurring. Additionally, advisers requested more insight into the reality of workplace and employment impacts, particularly around income protection. Hence, a second, expanded edition was launched in mid-2024.
Volume Two of Cost of Care is significantly larger than its predecessor, both in content and depth. Notable additions include:
One ethical pitfall in insurance research is the risk of cherry-picking data that highlights only favorable outcomes or pushes clients toward a specific product. The professionalism underpinning Zurich’s approach avoids these issues in two ways:
Crabbe emphasizes that making the methodology transparent was a core goal. In seeking awards for the design of the dynamic report, the team highlighted the interplay of professional analytics and an ethical duty to ensure data is presented in an unbiased, accessible manner. Advisers can use this data knowing it does not simply paint a “worst-case scenario,” but is grounded in genuine statistics, regularly updated, and free from narrow, product-led marketing.
One of the cornerstones of professionalism in financial advice is the proper education of clients. If a client believes that Medicare or private health insurance will cover all costs associated with a serious illness, they may be making a decision with incomplete information. Cost of Care helps advisers paint a clearer picture: in Australia, there are five main contributors to healthcare spending—federal government, state and local government, private health funds, non-government entities (like workers compensation), and individuals. Individuals themselves are third in line, contributing more in aggregate than private insurers.
This is a crucial fact to bring up ethically. Advisers have a duty not to manipulate client perceptions but to align those perceptions with reality. Presenting the data from Cost of Care can illustrate how out-of-pocket expenses and indirect costs (such as loss of income, superannuation gaps, and lifestyle adjustments) can accumulate, particularly for conditions like cancer that can involve protracted treatment. Giving clients a realistic assessment of the ongoing expenses—rather than a one-off lump sum—empowers them to make informed decisions about their insurance coverage, savings, and contingency planning.
Crabbe’s discussion of pro bono work highlights another hallmark of professional ethics: community engagement and social responsibility. Professional advisers are often seeking ways to demonstrate their commitment to the public good. By aligning with philanthropic foundations—such as cancer foundations that refer patients in financial crisis—advisers can provide limited or one-off pro bono services. Not only does this aid individuals who might otherwise not be able to afford professional advice, but it reinforces the adviser’s commitment to ethics in action.
Crabbe recounts an adviser who showed him a handwritten note from a pro bono client—a cancer sufferer—who was deeply thankful for the emotional, logistical, and financial guidance they had received. This gesture showed how financial advice is about more than money: it is about helping people piece together their lives when faced with a crisis. For many professionals, this story encapsulates the “why” of their practice, reminding them of their vocation’s transformative potential.
Moreover, offering pro bono advice, even if only once per month or quarter, can set an adviser apart in the marketplace. Clients, whether they pay a fee or not, are attracted to businesses that display genuine care for community welfare. For younger professionals in particular, who place a premium on social impact and ethical conduct, a practice that weaves philanthropy into its value proposition can be extremely appealing as an employer or a service provider.
One aspect of ethical conduct is admitting that no single adviser can do everything alone. In wealth management, some advisers specialize strictly in risk insurance, while others focus on superannuation, retirement, or estate planning. Cost of Care data can be a bridge: if a holistic adviser who rarely writes insurance policies encounters a client who is severely underinsured, their professional duty might compel them to refer that client to a risk specialist.
Fear of losing the relationship can sometimes impede referrals, but Crabbe notes that many risk specialists have no desire to “compete” on broader advice. They may be equally anxious to refer wealth or retirement enquiries back to a generalist or holistic adviser. Such reciprocal arrangements represent the highest standard of professionalism, where the client’s interest is paramount, and advisers maintain healthy networks to address every facet of a client’s financial well-being.
Cost of Care Volume Two expanded to cover younger demographics, including infant and childhood illnesses. This addition underlines a phenomenon that many advisers have witnessed: when a child experiences a severe medical issue, families often scramble financially, tapping not only their own resources but also those of the extended family. Retirees sometimes find themselves reversing financial plans to help adult children in crisis, which can compromise the grandparents’ retirement security.
Crabbe mentions a scenario in which grandparents, concerned about the financial vulnerability of their adult children, purchase and own child trauma policies on their grandchildren. This strategic ownership can be set up without the need for legal guardianship arrangements, subject to an insurer’s rules. The policy can be quite inexpensive, especially at a child’s young age, and the sum insured can be structured to cover common serious childhood illnesses or accidents.
From an ethical standpoint, an adviser might consider it their responsibility to at least raise this solution if the client’s circumstances warrant. The guiding principle of “best interest” demands that advisers consider both a client’s potential outlays and the well-being of subsequent generations—especially when it is highly likely that grandparents would voluntarily step in to assist a sick grandchild. If a modest premium can prevent large cash calls on the grandparents’ own retirement nest egg, such an arrangement might be the difference between a family maintaining its longer-term financial goals or sacrificing them in times of distress.
Alongside the updated Volume Two, Zurich introduced a simpler online tool called “Someone Like You,” which is a two-click system that tailors the statistical overview to a client’s gender and age range. It aims to answer the question, “What are the likely illnesses and potential costs for someone like me?”
This step toward personalization addresses a key ethical principle: meeting the client “where they are.” By focusing on the client’s demographic, advisers can present only the most pertinent data. For a 26-year-old who believes they are too young to worry about insurance, “Someone Like You” might reveal that certain cancers or accidents are more prevalent in their age bracket than they realize. The immediacy of such data encourages clients to reflect carefully on their assumptions.
For instance, an adviser might say:
“Let’s quickly check the tool for a male client age 25 to 30. It shows the most common health issues that occur for this cohort and typical out-of-pocket expenses. Even if you only rely on Medicare or private health, there are likely thousands of dollars in costs not covered in a worst-case scenario. Let’s consider how you might manage that financially.”
In delivering this knowledge, an adviser is not resorting to fear tactics but fulfilling a professional duty to inform clients of pertinent risks and encourage decisions aligned with long-term financial stability. If the client still refuses coverage, that is their prerogative. But the adviser would have acted ethically by educating them comprehensively.
An ongoing challenge in professional finance is balancing the roles of adviser as both advocate for a prudent plan and respecter of client autonomy. The Cost of Care data can strengthen the adviser’s position when recommending coverage, but it must be used transparently and without undue pressure. A purely fear-based approach—“You must buy all the coverage or else!”—would undermine trust and professional credibility.
Ethically, the best approach is to incorporate Cost of Care insights into a broader fact-find and goals-based discussion:
In each stage, the adviser upholds a duty of care to present available data, offer unbiased recommendations, and document client decisions. This transparency fosters trust, demonstrating that ethical advisers respect client autonomy while ensuring they fully understand the risks.
Crabbe’s anecdote about receiving a handwritten thank-you note from a pro bono client illustrates that professionalism in financial advice transcends technical expertise. While knowledge of coverage gaps, waiting periods, claim exclusions, and hospital schedules is critical, professional conduct is also marked by empathy, humanity, and a willingness to serve.
For advisers wary of insurance complexities or concerned about compliance burdens, the Cost of Care data underscores why ignoring risk cover can be detrimental to client outcomes. Even advisers who choose not to provide risk advice personally can maintain a strong network of specialists to whom clients can be referred. Doing so adheres to ethical standards, ensuring clients have access to suitable solutions for some of life’s greatest financial hazards.
In a world where many financial advisers are pressed for time, and regulatory changes demand immense documentation and demonstration of best interests, having a resource like Cost of Care is invaluable. It simplifies educational conversations, providing current and relevant data on major health events. It encourages an ethical conversation, as the adviser can show they have done their research and are using independent findings that relate directly to the client’s risks.
The release of Cost of Care Volume Two marks a significant milestone in the ongoing mission to raise awareness around the financial, social, and emotional impacts of critical illnesses. By unveiling detailed insights—out-of-pocket expenses, workplace disruption, philanthropic support mechanisms, and generational burdens—this expanded resource empowers professional advisers to speak with authority and empathy when recommending solutions.
The tool “Someone Like You” offers a client-centric entry point for these discussions, allowing even younger or skeptical clients to understand how certain conditions and financial shortfalls can affect them personally. With private health insurance covering less than many people assume, and public healthcare not always “free,” the report clarifies why “going it alone” can be riskier than clients initially believe.
From an ethical perspective, Cost of Care exemplifies how research and data can be used for genuine client advocacy rather than as a mere sales tactic. When an adviser uses this information to enrich the client’s understanding, provide realistic coverage estimates, and bridge their needs via referrals, they are upholding the highest standard of professionalism. The dialogue around pro bono work further cements the moral dimension of financial advice—showing that advisers can be pillars of support for vulnerable individuals and families, while also affirming the social value of their profession.
Incorporating Cost of Care findings is neither difficult nor time-consuming, thanks to the dynamic online report. Advisers looking to strengthen their client offerings, remain competitive, and maintain ethical rigor can integrate these insights into everything from risk insurance strategies to estate planning. Ultimately, this leads to a more holistic practice—one aligned with the principles of service, transparency, and beneficence that define the very best in financial advice.
Accreditation Points Allocation:
0.10 Technical Competence
0.10 Client Care and Practice
0.10 Regulatory Compliance and Consumer Protection
0.10 Professionalism and Ethics
0.40 Total CPD Points