Australian Insurers Address Surge in Mental Health Claims
Australian Insurers Address Surge in Mental Health Claims
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The Australian insurance industry is facing unprecedented challenges due to a significant rise in mental health-related claims.
The Council of Australian Life Insurers reports that mental health has become the leading cause of total and permanent disability claims, accounting for nearly one in three payouts.
In the past year alone, life insurers paid $2.2 billion for retail mental health claims, nearly doubling the amount from 2020. This surge is particularly pronounced among Australians in their 30s, with total and permanent disability claims in this age group increasing by 732% over the past decade.
Christine Cupitt, CEO of the Council of Australian Life Insurers, emphasises the strain on the entire safety net, noting that more individuals, especially younger Australians, are leaving the workforce permanently due to mental health conditions. This trend necessitates a comprehensive reassessment of how insurers support customers facing mental health challenges.
For beauty industry professionals, this development underscores the importance of comprehensive insurance coverage that includes mental health support. As the industry evolves to address these challenges, beauticians should stay informed about policy changes and ensure their coverage adequately protects against potential mental health-related claims.
Published:Tuesday, 9th Dec 2025 Source: Paige Estritori
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Rebecca is a single, self-employed graphic designer who works from home. Aged in her mid-30s, she has monthly commitments of a mortgage and car payments and the usual living expenses. - read more
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Coinsurance: A percentage of the cost of a covered healthcare service that you pay after you have paid your deductible.
