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:
| ATA Challenges Productivity Commission's Proposal to Double Truck Fuel Tax 01 Mar 2026: Paige Estritori The Australian Trucking Association (ATA) has expressed strong opposition to the Productivity Commission's proposal to more than double the tax on truck fuel. The plan suggests phasing out fuel tax credits for trucking operators, effectively increasing the fuel tax rate from the current 32.4 cents per litre to 66.1 cents per litre by 2035. - read more |
| PERILS Revises Loss Estimate for November 2025 Storms in Queensland and NSW 01 Mar 2026: Paige Estritori In a recent update, catastrophe data provider PERILS has increased its insurance industry loss estimate for the severe convective storms that struck Queensland and New South Wales between November 21 and 27, 2025. The revised estimate now stands at AU$2.95 billion, marking an 11% rise from the initial figure of AU$2.663 billion released in January 2026. - read more |
| Federal Court Denies Truck Driver's Insurance Claim Against Superannuation Fund 01 Mar 2026: Paige Estritori In a recent legal decision, the Federal Court dismissed a truck driver's insurance claim against the Australian Retirement Trust. The case centred on whether the driver had active insurance coverage through his superannuation account, particularly concerning the 'dangerous occupation exception.' - read more |
| AIA Australia Introduces Enhancements to Priority Protection Life Insurance 28 Feb 2026: Paige Estritori AIA Australia has announced significant updates to its Priority Protection life insurance suite, effective from 9 November 2025. These enhancements are designed to simplify discounts, improve policy clarity, and support premium affordability for policyholders. - read more |
| The Role of Health Insurance in Supporting Preventive Care Preventive healthcare refers to measures taken to prevent diseases, rather than treating them after they occur. This includes actions like regular health screenings, vaccinations, and adopting healthy lifestyle practices. - read more
|
| The Role of Life Insurance in Your Overall Financial Strategy Financial planning plays a pivotal role in managing your economic resources effectively. By assessing your income, expenses, and goals, you can create a plan that helps achieve financial security. A comprehensive financial plan covers saving, investing, budgeting, and managing liabilities to secure your future. - read more
|
| Common Pitfalls in Income Insurance Claims and How to Avoid Them Income insurance is a critical component of financial planning, offering a safety net when life's uncertainties impact your income stream. It ensures that you can continue meeting your financial obligations even if you're unable to work due to illness or injury. This peace of mind is invaluable, especially in an unpredictable job market. - read more
|
| Why Income Protection Insurance is Vital for Your Financial Security Income protection insurance is a type of coverage that provides you with a financial safety net in case you are unable to work due to illness or injury. It typically pays up to 75% of your regular salary, helping you to continue meeting your financial obligations during difficult times. - read more
|
A form of life insurance that is a pure protection policy with no cash or maturity value which lasts for a specific length of time, called a term.