Mental Health Surpasses Other Causes in TPD Claims, Doubling Payouts Over Five Years

0

In particular, the report noted that life insurers paid out over $2.2 billion for retail mental health claims, with TPD claims due to mental health issues representing a third of the total claims. Additionally, mental health issues comprise 20% of income protection claims, leading to payouts totalling $887 million in 2024 alone.

This trend reflects a broader trajectory first identified by the council in the previous year. According to the Australia’s Mental Health Check Up report by KPMG, there has been a staggering 732% increase in permanent disability claims among individuals in their 30s, with 36% now attributed to mental health conditions—a sharp rise from just 10.1% in 2013.

Christine Cupitt, CALI's chief executive, expressed concern over the increasing pressure on the safety net, including life insurance. She highlighted that while lump sum payouts offer immediate relief, they might not ensure long-term financial security, particularly for younger individuals with many years left in their working lives.

Cupitt remarked, "Australia is reaching a tipping point. Every year, more young Australians exit the workforce permanently due to mental health issues. It's troubling that these individuals often have to classify themselves as totally and permanently disabled, even when medical evidence suggests they could potentially return to work."

She further emphasized the need for systemic changes to cultivate a community more resilient to mental health challenges. While insurers remain committed to supporting those most affected by mental health conditions, there is an ongoing effort to reevaluate and improve customer service strategies for the future.

Published:Monday, 14th Jul 2025
Source: Paige Estritori

Share this news item:

Insurance News

Clear

QBE Highlights the Importance of Adequate Landlord Insurance 15 Jul 2025: Paige Estritori Landlords in Australia have been advised by QBE Insurance Group to reassess their insurance coverage, following survey findings that indicate many could encounter financial hardships if their rental operations are interrupted. According to QBE's data, 38% of landlords might face financial challenges should their properties become uninhabitable or rental payments cease for a duration of two to six weeks. - read more

Court Denies E-Scooter Negligence Allegation Against City Council 14 Jul 2025: Paige Estritori An Australian court recently ruled in favour of the City of Joondalup, rejecting a negligence claim lodged by an injured e-scooter rider. The Western Australia District Court found the city not liable for an accident involving insurance broker Kirstin Leibbrandt, who collided with a fence post while riding an e-scooter in the Perth suburb of Hillarys. - read more

Mental Health Surpasses Other Causes in TPD Claims, Doubling Payouts Over Five Years 14 Jul 2025: Paige Estritori Recent findings from the Council of Australian Life Insurers (CALI) reveal that mental health issues have become the primary cause of Total and Permanent Disability (TPD) claims. Insurers disbursed nearly twice the amount for such claims in 2024 compared to five years prior. This data originates from the CALI and KPMG's Cause of Claims Results Report, highlighting a significant shift in the nature of insurance claims. - read more

Impact of Trump Tariffs on Global Insurance Industry 11 Jul 2025: Paige Estritori According to Swiss Re’s latest Sigma report, the growth of property and casualty premiums is moderating in both Australia and globally. This moderation is primarily driven by a slowdown in rate hikes. Additionally, the Trump administration's America First trade policy is putting further pressure on the insurance sector. - read more

Navigating Changes in Australia's Life Insurance Advice Landscape 10 Jul 2025: Paige Estritori The conversation on the shifting dynamics in Australia's life insurance advice sector featured Zurich Australia's head of adviser channel, Kieran Forde, and Hayes & Co director, Katherine Hayes. They engaged with editor Chris Dastoor to spotlight the current market conditions and future prospects for financial advisers in this domain. - read more