Health Insurance Online :: News
SHARE

Share this news item!

Surge in Mental Health Claims Challenges Australia's Income Protection Insurance

Understanding the Impact of Rising Mental Health Claims on Insurance Policies

Surge in Mental Health Claims Challenges Australia's Income Protection Insurance?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Recent data from the Council of Australian Life Insurers (CALI) reveals a significant shift in the landscape of income protection insurance in Australia.
Mental health conditions have emerged as the leading cause of total and permanent disability (TPD) claims, accounting for nearly one-third of all claims paid.
In 2024 alone, insurers disbursed over $2.2 billion for retail mental health claims, a figure that has almost doubled compared to five years prior.

This trend underscores a growing concern within the insurance industry. The rate of TPD claims for mental health among Australians in their 30s has surged by more than 700% over the past decade. Such statistics highlight the increasing prevalence of mental health issues and their profound impact on the workforce and insurance systems.

Christine Cupitt, CEO of CALI, emphasized the strain this places on the nation's financial safety net. She noted that the entire system is under pressure, with a rising number of individuals, particularly younger Australians, exiting the workforce permanently due to mental health conditions. This situation necessitates a reevaluation of how insurers can better support customers and adapt to the evolving landscape of mental health challenges.

For policyholders, this surge in mental health-related claims may lead to changes in policy terms, premium adjustments, and a heightened focus on mental health support services. It's crucial for individuals to review their current income protection policies, understand the coverage specifics related to mental health, and consider seeking advice from financial advisors to ensure adequate protection.

In conclusion, the rise in mental health claims presents both challenges and opportunities for the Australian insurance industry. By acknowledging and addressing these trends, insurers can develop more responsive and supportive policies that cater to the evolving needs of their clients.

Published:Thursday, 25th Dec 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Surge in Mental Health Claims Challenges Australia's Income Protection Insurance
Surge in Mental Health Claims Challenges Australia's Income Protection Insurance
25 Dec 2025: Paige Estritori
Recent data from the Council of Australian Life Insurers (CALI) reveals a significant shift in the landscape of income protection insurance in Australia. Mental health conditions have emerged as the leading cause of total and permanent disability (TPD) claims, accounting for nearly one-third of all claims paid. In 2024 alone, insurers disbursed over $2.2 billion for retail mental health claims, a figure that has almost doubled compared to five years prior. - read more
Decline in Income Protection Premiums Reflects Market Adjustments in Australia
Decline in Income Protection Premiums Reflects Market Adjustments in Australia
25 Dec 2025: Paige Estritori
Recent research from Rainmaker Information indicates a notable decrease in income protection insurance premiums across Australia. Direct income protection premiums have fallen by 12% for policies with a 30-day waiting period and 13% for those with a 90-day waiting period since 2024. Similarly, premiums for life products sold through advisers have decreased by 5%, with income protection premiums dropping by 7% for 30-day waiting periods and 5% for 90-day periods. - read more
Superannuation Insurance Extends Coverage to 6 Million More Australians
Superannuation Insurance Extends Coverage to 6 Million More Australians
25 Dec 2025: Paige Estritori
New research from the Association of Superannuation Funds of Australia (ASFA) reveals that superannuation insurance now provides critical protection to over 6 million Australians who would otherwise be uninsured. This expansion has been achieved without impacting household spending, as the coverage is included within superannuation contributions. - read more
Adore Beauty's Strategic Acquisition of Ikou Enhances Market Presence
Adore Beauty's Strategic Acquisition of Ikou Enhances Market Presence
25 Dec 2025: Paige Estritori
In a significant move within the Australian beauty industry, Adore Beauty has announced the acquisition of wellness and skincare brand Ikou for $25 million. This strategic decision aims to bolster Adore Beauty's private label offerings and marks its entry into the physical retail space. - read more
Government Scrutinizes Health Insurers' Pricing Practices
Government Scrutinizes Health Insurers' Pricing Practices
25 Dec 2025: Paige Estritori
Health Minister Mark Butler has issued a stern warning to private health insurers regarding the use of 'underhanded' tactics to raise premiums. This comes in response to findings that some insurers have been closing old policies and introducing more expensive ones, effectively increasing costs for consumers. - read more
Click for more Insurance News


Health Insurance Articles

The Importance of Comparing Health Insurance Extras for Maximum Savings
The Importance of Comparing Health Insurance Extras for Maximum Savings
Health insurance is more than just a precautionary measure; it's a vital component in managing both your health and financial well-being. In Australia, where healthcare costs can quickly escalate, health insurance extras serve as a buffer, ensuring that services like dental, optical, and physiotherapy remain within reach. These extras can significantly reduce the out-of-pocket expenses you might otherwise encounter for non-hospital treatments. - read more
Unlocking Affordable Health Insurance: Tips to Reduce Your Premiums
Unlocking Affordable Health Insurance: Tips to Reduce Your Premiums
The current health insurance landscape in Australia can be quite confusing for many people. With numerous options available, it’s not always clear which to choose to balance your budget with your needs. Premiums are on the rise, and Australians are becoming increasingly concerned about the costs of maintaining adequate coverage. - read more
Don't Fall for These Health Insurance Misconceptions
Don't Fall for These Health Insurance Misconceptions
Private health insurance is an essential consideration for many Australians. It provides peace of mind, knowing that you and your family have access to the best possible healthcare when needed. - read more
Demystifying Individual Coverage: Your Guide to Personal Health Insurance in Australia
Demystifying Individual Coverage: Your Guide to Personal Health Insurance in Australia
In the realm of securing one’s health and wellbeing, navigating the Australian health insurance landscape can be as critical as the care received. It stands as a complex tapestry, woven with policies, premiums, and government incentives, affecting individuals and families nationwide. - read more
The Ultimate Guide to Comparing Health Insurance Plans in Australia
The Ultimate Guide to Comparing Health Insurance Plans in Australia
Australia is renowned for its iconic landmarks, diverse ecosystems, and robust healthcare system. While the public healthcare system, Medicare, provides essential health services, it might not cover everything. The allure of private health coverage lies in its promise of broader options, reduced wait times, and coverage for services not included in Medicare, like dental and optical care. - read more


Your free Heatlth insurance quote comparison starts here!
First Name:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Occupational Hazard:
A risk associated with the nature of a particular occupation, which may affect insurance premiums.

Quick Links: | Private Health Insurance Australia | Best Private Health Insurance | Compare Health Insurance Plans | Affordable Health Insurance | Health Insurance Quotes | Private Health Cover | Health Insurance Comparison | Top Health Insurance Providers | Health Insurance Benefits | Health Insurance Premiums | Health Insurance Policies
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.