Latest Poll – Insuring Episodic Disability

Our latest poll is seeking your take on an emerging conversation around how best to offer insurance cover for those suffering mental health issues – many of which are episodic in nature, together with other episodic disability types.

The dilemma of the surging incidence of mental illness in our Australian community and the equally alarming surge in mental health-related TPD claims continues to challenge some of the best minds in the industry as it collectively seeks a workable solution that will appropriately offer cover to those who need it while maintaining a viable and sustainable life insurance sector.

…while there was general agreement that product change was needed …it became equally apparent that the ability to deliver such solutions was far from simple.

Elements of this dilemma were debated at the Zurich Sustainability Round Table, where it became clear that while there was general agreement that product change was needed – such as developing lower-premium policies offering staged benefit payments for episodic total disability – it became equally apparent that the ability to deliver such solutions was far from simple.

Our panel shared two cautionary views in relation to the above scenario, one of which related to client best interest issues – ‘What if my client would also have been eligible to make a successful claim under the comprehensive benefit TPD offers which exist today…?

The other dampener related to a concern that such lower-priced product offers would still potentially be subject to excessive base premium increases over time, thereby eroding any cost of living/economic benefit a client may see as attractive in opting for a lower-priced but more restricted benefit offer.

This is just the start of a complex discussion as we hand the baton to Riskinfo readers to continue the conversation…