Mental Health Claims: A Growing Concern for Young Adults
Mental Health Claims: A Growing Concern for Young Adults
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.
Published:Friday, 6th Dec 2024
Source: Paige Estritori
Share this news item:
| Western Australia's Transport Sector Pushes for Enhanced Truck Licensing Standards 29 Mar 2026: Paige Estritori Western Australia's transport industry is urging the state government to implement more stringent heavy vehicle licensing requirements, aiming to bolster road safety and address concerns over inexperienced drivers operating large trucks. This initiative follows South Australia's recent reforms, which introduced tougher conditions for obtaining multi-combination (MC) licenses. - read more |
| Australian Road Transport Industry Grapples with Escalating Fuel Prices 29 Mar 2026: Paige Estritori The Australian road transport industry is currently facing significant financial pressures due to escalating fuel prices, which have substantially increased operational costs for trucking businesses nationwide. This surge in fuel expenses is compounding existing challenges, including rising maintenance costs, land taxes, and insurance premiums, thereby squeezing profit margins and threatening the viability of many operators. - read more |
| Navigating Seasonal Risks in Australian Trucking: Insurance Considerations 29 Mar 2026: Paige Estritori Seasonal variations in Australia present unique challenges for the trucking industry, influencing safety, operational efficiency, and insurance considerations. Wet weather conditions, increased holiday traffic, and heightened freight demand during peak seasons can all impact the risk profile of trucking operations, necessitating a thorough understanding of these factors to ensure adequate insurance coverage and business resilience. - read more |
| Australian Insurers Grapple with AI Disruption Fears 29 Mar 2026: Paige Estritori In recent weeks, major Australian insurers such as Insurance Australia Group (IAG), Suncorp (SUN), and QBE Insurance (QBE) have experienced notable declines in their stock prices. This downturn is largely attributed to growing investor concerns about the potential disruption posed by artificial intelligence (AI) within the insurance sector. - read more |
| Decoding the Fine Print: What to Look out for in Your Income Protection Policy Income protection insurance serves as a vital safety net for Australian workers, ensuring financial stability in the face of unexpected illness or injury. As the landscape of work and health continues to evolve, understanding the essentials of income protection becomes increasingly crucial for anyone who relies on a steady income to support themselves and their loved ones. - read more
|
| Income Protection Insurance: Understanding Waiting Periods and Benefit Periods Income protection insurance is a financial product designed to support individuals in the event that they are unable to work due to illness or injury. This type of insurance provides a regular income, helping to replace a portion of lost earnings and meet daily living expenses. Virtually anyone earning an income, especially those with financial dependents or significant debts, should consider the peace of mind that income protection can offer. - read more
|
| Income Protection: How to Safeguard Your Earnings in Uncertain Times In the landscape of personal financial planning, income protection insurance emerges as a critical safeguard against the unpredictable nature of life's many uncertainties. As we navigate through economic turbulence and job market volatility, the importance of income protection becomes ever more apparent. This type of insurance serves as a financial backstop, designed to provide a stable flow of income when you're unable to work due to sickness or injury. - read more
|
| Understanding Income Protection Insurance for Real Estate Professionals Income protection insurance is designed to provide financial support if you're unable to work due to illness or injury. It ensures a portion of your income continues to be paid during times when you cannot earn. This type of insurance acts as a safety net, offering peace of mind by securing your financial stability during challenging times. - read more
|
Notification to an insurance company requesting payment of an amount due under the terms of the policy.