Surge in mental health claims spurred by flaws in workers’ compo
Life insurers’ increased mental health traffic is partly the result of tightened and unattractive workers compensation schemes, say psychologists and actuaries.
Psychologists say a surge in mental health claims that have swamped life insurers is partly due to many public servants choosing private options rather than workers’ compensation because they fear negative consequences if they lodge a claim within state-run systems.
Life insurance payouts for mental health grew from 25 per cent of total claims in 2019 to 44 per cent in 2024, according to insurers, who say they may have to shorten claim cutoff limits and toughen eligibility requirements to contain a blowout in costs.
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Lucy Dean writes about wealth management, personal finance, lifestyle and leisure, based in The Australian Financial Review's Sydney newsroom. Connect with Lucy on Twitter. Email Lucy at l.dean@afr.com
