Life Insurance Online :: News
SHARE

Share this news item!

Rising Mental Health Claims Reshape Australia's Insurance Landscape

Understanding the Impact of Mental Health on Total and Permanent Disability Claims

Rising Mental Health Claims Reshape Australia's Insurance Landscape?w=400

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.

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.

In the past year, insurers have paid out over $2.2 billion in mental health-related claims, nearly doubling the amount recorded five years ago. This surge is particularly pronounced among younger Australians, with TPD claims for individuals in their 30s increasing by 732% over the past decade.

Christine Cupitt, CEO of CALI, highlighted the strain this trend places on the financial safety net, emphasizing the need for a more mentally resilient community. She noted that the current system often compels individuals to label themselves as totally and permanently disabled, even when medical evidence suggests a potential return to work.

Income protection claims related to mental health have also risen, with payouts totaling $887 million in 2024. This underscores the growing need for comprehensive support systems that address mental health challenges and facilitate reintegration into the workforce.

For policyholders, this trend underscores the importance of understanding the mental health provisions within their income protection insurance policies. Ensuring adequate coverage and support for mental health conditions is crucial in the current landscape.

As the industry grapples with these challenges, insurers are urged to rethink their offerings and develop strategies that better serve customers facing mental health issues. This includes creating policies that support recovery and return to work, rather than solely focusing on permanent disability.

In conclusion, the rise in mental health-related claims is reshaping Australia's insurance landscape. Both insurers and policyholders must adapt to this evolving environment by prioritizing mental health support and ensuring that insurance products meet the changing needs of the population.

Published:Wednesday, 10th Dec 2025
Source: Paige Estritori

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

Share this news item:

Insurance News

Rising Mental Health Claims Reshape Australia's Insurance Landscape
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
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
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
Marinex Underwriting Sets Sail in Australian Marine Insurance Market
Marinex Underwriting Sets Sail in Australian Marine Insurance Market
10 Dec 2025: Paige Estritori
In a significant development for Australia's marine insurance sector, Rhodian Group has announced the launch of Marinex Underwriting, a specialised agency dedicated to addressing the complex insurance needs of the marine industry. This initiative marks Rhodian's third agency launch, following the establishment of Halo Underwriting and Batch Underwriting in previous years. - read more
Markel Insurance Strengthens Australian Presence with New Marine Leadership
Markel Insurance Strengthens Australian Presence with New Marine Leadership
10 Dec 2025: Paige Estritori
Markel Insurance has announced the appointment of Tim Wills as Head of Marine for Australia, signalling the company's strategic expansion into the Australian marine insurance market. Based in Sydney, Wills will spearhead the launch of Markel's marine products in the region, beginning with marine cargo insurance. - read more


Life Insurance Articles

Why Life Insurance Should Be a Priority for Every Married Couple
Why Life Insurance Should Be a Priority for Every Married Couple
When it comes to financial planning, life insurance often takes a backseat. Many married couples in Australia overlook its importance, thinking that it's not immediately necessary or that they can simply put it off for later. However, life insurance should be regarded as a cornerstone of a solid financial strategy. - read more
Strategies to Use Life Insurance in Funding Shareholder Agreements
Strategies to Use Life Insurance in Funding Shareholder Agreements
Shareholder agreements lay the cornerstone for stable business relationships and continuity in Australia. Acting as a contract among business owners, these agreements set forth the expectations, rights, and obligations of all parties involved. They are particularly vital in delineating clear paths for dispute resolution, succession planning, and the transfer of ownership shares under varied circumstances, including the untimely death or departure of a shareholder. - read more
Life Insurance for Entrepreneurs: Protecting Your Business and Family
Life Insurance for Entrepreneurs: Protecting Your Business and Family
Life insurance is a financial product designed to provide a safety net for your loved ones and business in the event of your passing. At its core, life insurance aims to deliver financial protection by paying out a lump sum or ongoing payments to a designated beneficiary upon the insured's death. - read more
Understanding Various Life Insurance Types: Which One is Right for You?
Understanding Various Life Insurance Types: Which One is Right for You?
Financial security is one of the most important aspects of modern family life. Ensuring that loved ones are protected and well-supported in the event of an untimely death is a fundamental concern for many Australians. - read more
Life Insurance Essentials: Protecting Your Growing Aussie Family
Life Insurance Essentials: Protecting Your Growing Aussie Family
Life insurance remains one of the most crucial considerations for new parents aspiring to provide a secure future for their growing families. The arrival of a child marks a transformative moment, redefining priorities and responsibilities. At its core, life insurance is a safety net, designed to offer financial protection and stability to loved ones in the event of an unforeseen tragedy. - read more


Start Here

Life Cover Amount:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Subrogation:
An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.