Group life insurers are still searching for the most effective approach to support super fund members who initiate a claim for a mental health problem, according to SuperFriend, a mental health promotion foundation formed by Industry Super Funds and their insurers.
In order to address this issue, SuperFriend has undertaken a project to develop a best practice framework for the management of psychological injury claims in the group life sector. The project will take into account the experiences members reportedly face when making a claim for a mental health problem. The project was developed in consultation with SuperFriend’s Insurance Reference Group, which is made up of representatives from their supporting partner group insurers.
The results of industry-first research into mental illness and insurance claims, released by SuperFriend in 2014, provided further support for the need for a best practice approach to psychological injury claims management. The research found that 10% of all insurance claims through participating superannuation funds over a five year period were attributed to mental illness and/or suicide.
…mental health problems are associated with longer periods off work and higher subsequent unemployment
“We know mental health problems are associated with longer periods off work and higher subsequent unemployment compared to physical health conditions, and as a result, mental illness claims can be significantly more costly,” said SuperFriend CEO, Margo Lydon.
Ms Lydon also noted that mental health problems often arise as a secondary condition among claimants who initially suffer a physical illness or injury. She said that this can significantly impact the length of claim for the member, or create additional return to work barriers not originally identified by rehabilitation providers. Unfortunately, the extent of secondary claim causes for mental health problems is difficult to quantify because not all insurers or funds record this data.
The project, due for completion in May 2015, will deliver a practical, evidence-based framework which:
- Influences practice rather than prescribes, by providing a strong knowledge and evidence base
- Focuses on the management of psychological claims only, rather than physical injury or other illness-related claims
- Enables insurers to incorporate the entire framework, or components of the framework, into their business and case management models through a modular design
- Incorporates a ‘toolkit’ for evaluating implementation
Ms Lydon will be presenting on mental health and insurance at the Financial Services Council Life Insurance Conference, to be held next week in Sydney. She will be joined by a panel of experts on this topic, including Georgie Harman, CEO of beyondblue, and Megan Beer, Director of Insurance at AMP.
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