{"id":78054,"date":"2025-07-15T12:42:06","date_gmt":"2025-07-15T01:42:06","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=78054"},"modified":"2025-07-28T08:46:15","modified_gmt":"2025-07-27T22:46:15","slug":"tpd-under-pressure-as-claims-increase","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2025\/07\/15\/tpd-under-pressure-as-claims-increase\/","title":{"rendered":"TPD ‘Under Pressure’ as Claims Increase"},"content":{"rendered":"
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With news insurers paid out more than $2bn in retail mental health claims last year \u2013 almost double that of five years ago \u2013 CALI’s CEO says the entire safety net, not just life insurance, is under pressure…<\/h3>\n<\/div>\n<\/div>\n

More than $2.2bn was paid out in retail mental health claims by Australian insurers last year \u2013 almost double the amount paid five years ago.<\/p>\n

The figure, released by CALI, comes with a warning from the country’s life insurers that the nation\u2019s financial safety net is being pushed to its limits, as an increasing number of Australians leave work permanently due to mental ill health.<\/p>\n

\u201cAustralia is reaching a tipping point,\u201d said CALI CEO Christine Cupitt<\/strong>. \u201cThe entire safety net, not just life insurance, is under pressure.\u201d<\/p>\n

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Christine Cupitt<\/figcaption><\/figure>\n

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.<\/p>\n

\u201cPeople 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,\u201d says Cupitt.<\/p>\n

\u201cMore needs to be done to build a mentally fitter community.\u201d<\/p>\n

CALI states mental health is the leading cause of TPD claims, making up almost one in three claims paid.\u00a0It also makes up 20% income protection claims, with payouts totalling $887m last year.<\/p>\n

The entire safety net, not just life insurance, is under pressure…<\/p><\/blockquote>\n

The news won’t come as a surprise to those who attended CALI’s inaugural \u2018Wild For Life 2025\u2019<\/a> conference in April, where SuperFriend<\/a> CEO Darren Black<\/strong> pointed to a combination of causes that he believes is responsible for the apparent deterioration in mental health, namely:<\/p>\n