Mental Health Claims: A Growing Concern for Young Adults
Mental Health Claims: A Growing Concern for Young Adults
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Recent findings highlight a significant trend: an increase in Total and Permanent Disability (TPD) claims among 30- to 40-year-olds, with mental health as a key factor.
Over the past decade, these claims have soared, the Council of Australian Life Insurers (CALI) reports.
KPMG's report, "Australia’s Mental Health Check Up," presents data showing a 732% increase in TPD claims in this age group. Mental health issues now account for 36% of claims, a stark rise from 10.1% in 2013. The shift places mental health at the forefront of reasons for early workforce withdrawal.
Men are disproportionately affected, with a 59% greater likelihood of leaving jobs for mental health reasons. This pattern is emerging earlier, with the average age of claimants dropping from 48.8 years in 2013 to 46.5 years in 2022.
CALI CEO Christine Cupitt expressed concern over the trend's broader impact. "The unprecedented number of people leaving the workforce permanently in the prime of their working life has huge implications for them personally, for their loved ones, for our national economy, and for our already stretched government support systems,†she stated.
Australia's life insurers are not only collecting data but are also becoming more involved in addressing mental health impacts. “These are very concerning generational trends that show the frequency and severity of mental ill-health is rising exponentially in our community,†Cupitt highlighted.
The report underscores another finding: white-collar workers have a slightly higher propensity to claim disability benefits due to mental health issues compared to blue-collar peers. Specifically, they are 7% more prone to claim permanent and 14% more likely to request temporary disability.
Briallen Cummings, KPMG Partner, elaborated, “The significant rise in mental health conditions over the past decade is a real concern for the community and this is reflected in the life insurance data shown in our report.†She noted the growing severity and prevalence of these conditions making a tangible mark on societal well-being.
The report also attributes 80% of the decade-long increase in TPD claims to mental health, with annual growth nearing 10%. This far surpasses the 0.5% yearly rise for claims due to physical ailments.
Cupitt mentioned potential consequences for insurance coverage accessibility. "While governments are already thinking seriously about Australians’ mental health, we now have further evidence that our community needs more including a stronger and earlier safety net to keep people from falling through the cracks,†she remarked.
These findings suggest significant challenges and potential shifts in how mental health is managed within the workplace and by insurers. KPMG and CALI's research presents a call to action for enhanced support systems and preventative measures to address the burgeoning crisis.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Recent transport industry coverage has again highlighted regulator attention on heavy vehicle roadworthiness, with roadside checks, defect management and maintenance systems remaining central safety themes for Australian operators. For trucking businesses, the message is not limited to avoiding fines or delays. Roadworthiness can also influence how insurers view risk, how smoothly a claim progresses and whether policy conditions have been met after an incident. - read more
Australia’s engineered stone ban and continuing regulator focus on silica exposure are more than a workplace safety issue for builders, renovators, tilers, stonemasons, plumbers, electricians and demolition contractors. They also create a practical insurance checkpoint for any trade business that cuts, drills, grinds, removes or works around dust-generating materials. - read more
Fresh motor insurance commentary across the Australian market is again pointing to a practical issue truck operators know well: repairing vehicles is becoming more complex, more expensive and, in some cases, slower. For heavy vehicle businesses, this is not just a workshop problem. It can influence claim outcomes, renewal pricing, excess settings and the amount of time a truck is off the road after an incident. - read more
Recent complaints data from the Australian Financial Complaints Authority has again highlighted a pressure point that matters to rural Australia: insurance claims can become difficult when expectations, policy wording and evidence do not line up. While the figures cover the wider insurance market rather than farms alone, the themes are highly relevant for agricultural businesses dealing with storm damage, fire losses, machinery failures, fencing repairs or interrupted operations. - read more
Fresh industry attention on ASIC's expectations for compensation arrangements is a timely reminder that professional indemnity insurance should not be treated as a once-a-year renewal task. For Australian professionals who provide advice, compliance support, financial services, consulting, design, technology or outsourced business services, the adequacy of cover depends on how closely the policy matches the work actually being performed. - read more
Public liability insurance is an integral safety net designed to protect businesses from the financial risks associated with lawsuits or claims. It provides coverage when a business is found legally responsible for personal injury to a third party or damage to their property. This form of insurance can significantly reduce the burden of legal fees, compensation claims, and other associated costs that may arise from unforeseen incidents. - read more
Public liability insurance can help protect a business against the financial impact of third-party injury or property damage claims connected with its activities. Comparing rates is not just about finding the lowest premium; it is about understanding the cover, limits, exclusions and insurer support behind each quote. - read more
Welcome to our comprehensive guide on public liability insurance. If you run a business, you've probably heard this term thrown around quite often. But what exactly is public liability insurance? - read more
Today, we're diving into the world of public liability insurance, a crucial topic for anyone running a small business or working as a self-employed professional in Australia. - read more
Welcome to our comprehensive guide on public liability insurance, an essential safeguard for businesses across Australia. Navigating the complexities of liability insurance can be a daunting task for many business owners, but it’s a critical component of your business protection plan. If incidents such as accidents or property damage occur, liability insurance is the barrier that stands between your business and financial calamity. - read more
Start Here !
Knowledgebase
Premium: The amount paid for an insurance policy, usually on a regular basis, to maintain coverage.
No comments yet. Be the first to share your thoughts.