Australia: Life insurers continue to pay more for mental health

| 24 Jun 2020

Life insurers are continuing to pay out more for mental health related claims, as Australians take longer to return to work, according to new analysis by international professional services firm KPMG and the Financial Services Council.

Their five-year study on life insurance claims shows that over the period, the number of claim benefits paid for mental health conditions has doubled.

The analysis revealed claims paid due to mental health are now 53% higher than they were in 2013, with a 125% increase in the incidence of claims amongst men due to mental health.

Overall, Australian life insurance companies are paying out record amounts in disability claims, reported Financial Standard. Accidents top the list of causes for disability insurance claims at 38%, with musculoskeletal (18%), mental disorders (11%) and cancer 10% rounding out the top four.

KPMG actuarial partner Briallen Cummings said the increase in mental health claim pay-outs was notable despite the increase across the board. Rather than an increase in mental health pay-outs being due to an increase in the incidence of claims, it is the length of time involved in each claim which has caused the spike.

"Total claims benefits for mental health conditions have more than doubled in the past five years. More people are now focusing on their mental well-being, which we see in people taking longer to return to work after a mental health event," Mr Cummings said.

While most causes of claims see average claimants return to work after 12 months, claims for mental health stretch out to 18 months.

FSC chief executive Sally Loane said the data project is designed to help steer the local life insurance industry towards sustainable and affordable disability income insurance.

 

Asia Advisers Network is organising a virtual summit "Insurance Inspired: Winning in the New Normal" that is happening on 28-30 July 2020 as the first batch of speakers has been announced. Co-Organised by Jensen Siaw International and sponsor GoalsMapper, the summit will feature prominent international speakers across three days. There are over 500 sign ups within a week, so hurry and reserve your virtual spots today! https://bit.ly/InsuranceInspired

For more stories:

AXA focuses on improved health outcomes with first dedicated employee mental health offering in Hong Kong

Want to be more productive? Here's a life hack #OneMoreHour

Manulife Hong Kong unveils new MOVE Health Score to help customers become healthier

For the full suite of stories and updates, always check in to our Facebook / LinkedIn. Click the following if you want to improve your sales, learn how to be a better leader, or you just need some motivation to kick start your engine.

Do you have a new product or programme to share? Or perhaps you are keen to explore any collaborations with us or our partners?  Reach out to us at Connect@AsiaAdvisersNetwork.com