Mental Health Drives Growing Claims in Insurance Benefits: TAL Insights

2

⚠️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.

From April 1 to September 30, 2024, TAL processed IP or TPD claims for 28,450 individuals rendered unfit to work due to health challenges, with mental health accounting for 29% of these claims. This represents a marked increase of 6% from the previous year, when mental health was cited in 23% of 24,340 similar claims during the same timeframe in 2023.

These figures surface in the context of a CALI-commissioned report highlighting a surge in mental health-related TPD claims by Australians in their 30s and 40s over the past decade.

Moreover, the insurer reported dispensing $2.3 billion across various claim types during the past six-month window, reflecting a climb from $2 billion allocated to 32,456 claimants a year prior. TAL’s Chief Claims Officer, Georgina Croft, emphasized the critical role life insurance plays, underscoring, “Life insurance offers more than financial support when a loved one passes away. In the past 6 months, TAL benefit payments provided an important safety net to more than 28,000 Australians unable to work due to injury or illness.”

Croft elaborated on the company's broader mission: “Helping Australians during their toughest times with care and compassion is the most important thing we do. Beyond a claim payment, we want to help - for customers claiming IP or TPD this is about assisting them on their recovery journey. We do this by providing the financial, emotional and physical support they need to get back to health and on with life.”

TAL has been incorporating innovation and AI to enhance the claims process, thus facilitating a more responsive support network for those navigating claims. Croft noted, “We continue to uplift the personalised support we give Australians navigating the claims process and through their recovery.”

Uniquely placed through in-house health expertise, TAL contributes to swift claim adjudication and connects policyholders to crucial health services spanning mental health, occupational rehabilitation, and cancer support, fostering their journey to wellness and helping achieve established health goals.

In addition, TAL's pioneering 'Mental Health Assist' initiative, launched in 2021, extends virtual psychiatric assessments within 10 days to eligible customers. By 2023, feedback showed substantial benefits - diagnostic revisions for 70% of users, medication adjustments for 68%, revised therapy courses for 64%, and a 16% acceleration in the return to work for some participants.

Kate Tran, TAL Claims Recovery and Support Specialist, summarized the ultimate goal: “We’re focused on supporting our customers to live full lives, whether that’s improving their functional capacity so they can better engage in everyday activities and with those important in their life or return to work.”

Essentially, TAL aims to orchestrate early intervention and remove financial barriers to recovery aids, bolstering faster, enriched paths to rehabilitation for customers.

Published:Tuesday, 10th Dec 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Suncorp Reaches Maximum Reinsurance Retention Following Severe Storms in Queensland and NSW

11 Dec 2025: Paige Estritori

Recent supercell thunderstorms in South East Queensland and northern New South Wales have led to a surge in insurance claims, prompting Suncorp to reach its maximum reinsurance retention of $350 million. The insurer has reported over 10,000 claims related to these events, with approximately half pertaining to home damages and the other half to motor vehicles. - read more

NTARC Report Identifies Inattention and Speed as Primary Factors in Major Truck Crashes

11 Dec 2025: Paige Estritori

The National Truck Accident Research Centre (NTARC) has released its latest Major Incident Investigation Report, highlighting inattention, distraction, and inappropriate speed as the most frequent human factors behind major truck crashes in Australia. While there has been a modest reduction in these incidents compared to previous years, they continue to pose significant risks to road safety. - read more

Rising Mental Health Claims Reshape Australia's Insurance Landscape

10 Dec 2025: Paige Estritori

The Australian insurance industry is witnessing a significant shift as mental health conditions have become the leading cause of total and permanent disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) indicates that mental health issues now account for nearly one-third of all TPD claims, marking a substantial change in the industry's claim patterns. - read more

Australian General Insurers Achieve $6 Billion Profit Amid Fewer Natural Disasters

10 Dec 2025: Paige Estritori

In a remarkable turnaround, Australian general insurers have reported a combined profit of $6.1 billion over the past year. This substantial increase is attributed to a period of relative calm in natural catastrophes and robust investment returns. - read more

Australian Life Insurers Under Review for Mental Health Exclusion Practices

10 Dec 2025: Paige Estritori

Recent findings have revealed that certain Australian life insurers continue to implement blanket exclusions for mental health conditions, a practice that contravenes the industry's code of practice. This has raised significant concerns about the fairness and legality of such exclusions. - read more

Click for more Insurance News