With news insurers paid out more than $2bn in retail mental health claims last year – almost double that of five years ago – CALI’s CEO says the entire safety net, not just life insurance, is under pressure…
More than $2.2bn was paid out in retail mental health claims by Australian insurers last year – almost double the amount paid five years ago.
The figure, released by CALI, comes with a warning from the country’s life insurers that the nation’s financial safety net is being pushed to its limits, as an increasing number of Australians leave work permanently due to mental ill health.
“Australia is reaching a tipping point,” said CALI CEO Christine Cupitt. “The entire safety net, not just life insurance, is under pressure.”
Lending weight to Cupitt’s position is an alarming statistic included in a joint KPMG-CALI report from late 2024 showing mental health among people in their 30s has increased by 732% over the past decade.
“People are being left with little choice but to label themselves totally and permanently disabled, even where the medical evidence shows there is a chance they could return to work,” says Cupitt.
“More needs to be done to build a mentally fitter community.”
CALI states mental health is the leading cause of TPD claims, making up almost one in three claims paid. It also makes up 20% income protection claims, with payouts totalling $887m last year.
The entire safety net, not just life insurance, is under pressure…
The news won’t come as a surprise to those who attended CALI’s inaugural ‘Wild For Life 2025’ conference in April, where SuperFriend CEO Darren Black pointed to a combination of causes that he believes is responsible for the apparent deterioration in mental health, namely:
- The economic, emotional and psychological impact brought on by cost of living pressures
- The Covid-19 pandemic
- Recent natural disasters including devastating floods and some of the most catastrophic bushfires in Australia’s history
- Wars in Europe and the Middle East
- Dealing with the impact of Trump #2
- The rise of issues related to social media use
See: Mental Health Challenges – Redefining Resilient Communities
Why will no one address the elephant in the room when it comes to successful TPD claims for mental illnesses.
The word "permanent" features strongly in the two principal TPD definitions. The evidence provided by most medical professionals is that they are reluctant, extremely reluctant, to declare a disability associated with mental health to be permanent.
I keep asking the question: why are insurers paying out TPD claims for mental health when most treating psychiatrists would only declare about 10% of mental health disability to be permanent.
Perhaps Mr editor you could ask CALI for an explanation
Pfffft! "Dealing with the impact of Trump #2" – is this serious? What absolute rot. Too many people consuming (and swallowing) the horrific biased propaganda of leftwing owned, presstitute media outlets is causing this derangement.
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