Millennial mental health claims help push life insurers to $2.2b crisis

Insurers say stress, burnout and bullying at work – especially among young people – are among the reasons claimants give for being unable to return to work.

Lucy Dean and Michael Smith

Updated Jul 9, 2025 – 12.30pm, first published at 12.08pm

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Almost half the money paid out by life insurers is linked to mental health problems in what the industry says is a worsening crisis as more young people claim they are unable to work because they have developed severe anxiety, depression and post-traumatic stress disorders.

Life insurers say they are facing a crisis of affordability and sustainability similar to problems in the NDIS and state workers’ compensation schemes, as mental health claims grow from $1.2 billion in 2019 to $2.2 billion in 2024.

Lucy Dean writes about wealth management, personal finance, lifestyle and leisure, based in The Australian Financial Review's Sydney newsroom.

Michael Smith is the health editor for The Australian Financial Review. He is based in Sydney.