Life Insurance Sector to Develop New Mental Health Claims Framework
Life Insurance Sector to Develop New Mental Health Claims Framework
CALI CEO Christine Cupitt emphasized the need for transparency and simplicity in the claims process, responding to feedback from customers and consumer advocates. She highlighted Australia's current mental health crisis, stressing the importance of providing clear guidance on the role of life insurers in supporting affected Australians.
The Council has noted that mental health conditions represent the fastest-growing cause of life insurance claims. While insurers remain committed to aiding Australians with severe conditions that impede their ability to work, Cupitt clarified that life insurers, similar to the National Disability Insurance Scheme and workers' compensation programs, cannot be the solution for every case.
An expert panel will be set up to advise on developing the framework. This panel will comprise medical practitioners, legal specialists, rehabilitation and return-to-work experts, life insurance professionals, and individuals with lived experience of mental health issues. This diversified team aims to ensure the framework is comprehensive and adequately addresses varied perspectives and expertise.
Early next year, a three-month targeted consultation will take place, incorporating input from various stakeholders, including consumer representatives, mental health advocates, superannuation trustees, financial advisors, and medical professionals. This phase of consultation is key to refining the framework to be as inclusive and practical as possible.
In parallel, CALI’s initiative will run alongside the independent review of the Life Insurance Code of Practice, spearheaded by Peter Kell. A consultation paper concerning this review is anticipated shortly. The findings from this review will inform the new framework's development, and CALI will maintain engagement with Kell throughout the process.
Published:Tuesday, 21st Oct 2025
Source: Paige Estritori
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Insurance that an insurance company purchases from another insurance company to mitigate risk.