Discussions at a recent industry roundtable focused on the increasing prevalence of mental health conditions in Australia and their implications for insurance claims, product design, and customer support.
The event, convened by Zurich Financial Services Australia, provided a forum for sharing research findings and collaborative strategies to address sector-wide challenges. Participants – including academics, clinicians, and civil society representatives – examined new data on mental health diagnoses, access to care, and trends emerging from insurance claims.
Academic experts from Neuroscience Research Australia (NeuRA) and the University of New South Wales (UNSW) presented findings from a clinical trial exploring the use of emotional regulation tools and mental health interventions for chronic pain management. Professor Sylvia Gustin, co-director of the Centre for Pain IMPACT at NeuRA and UNSW, highlighted the strong association between mental health and chronic pain, noting that these issues together present a major challenge for global health systems. “In Australia alone, chronic pain affects around 20% to 30% of the population, with many also experiencing co-occurring mental health concerns,” Gustin said.
Dr Nell Norman-Nott, clinical research fellow at NeuRA and UNSW, described the clinical trial on pain and emotion therapy as “a new evidence-based approach that focuses on the emotional experience of chronic pain.” She added: “This roundtable was an important forum to discuss how this innovative therapy can be translated into clinical practice and made more widely accessible, which we see as the next critical step in improving care for people living with chronic pain.”
Analysis of Zurich’s insurance claims data revealed that mental health is now a factor in nearly a third of claims for some life insurance products and is cited in almost half of all total and permanent disability (TPD) claims, often as a secondary issue.
According to the Council of Australian Life Insurers (CALI), more than $2.2 billion was paid out in retail claims related to mental health in 2024 – almost double the figure from five years earlier. Income protection claims for mental health reached $887 million in the same period. The rate of TPD claims for mental health among Australians in their 30s has increased by more than 700% over the past decade.
Justin Delaney, chief executive officer at Zurich, commented: “We are witnessing a profound increase in the diagnosis and severity of mental illness in Australia.” He emphasised the value of industry collaboration. “Zurich’s mental health roundtables provide an important opportunity for the broader mental health ecosystem to collaborate, exchange views, and share data to drive continued progress in addressing some of the significant trends we are seeing,” Delaney said.
The roundtable underscored the importance of collaboration between insurers, healthcare providers, and researchers to address the growing burden of mental ill-health. “Addressing the growing burden of mental ill-health requires genuine collaboration across sectors. Partnerships between insurance, health, and research organisations are essential to driving innovation and delivering meaningful change for Australians,” said Rheza Tan, clinical director at MindSpot.
Participants also discussed recent initiatives, such as new mental health support programs for claimants, expanded training for claims staff on supporting vulnerable customers, and the integration of mental health specialists into claims and underwriting teams. Chris Gambian, executive director at Australians for Mental Health, said: “The mental health challenges Australia faces will require us to come together and find solutions in ways we have never done before.”
Nieves Murray, CEO of Suicide Prevention Australia, commented: “It was particularly interesting to learn about the increasing prevalence of mental health impacting the ability of people to live a contributing life. As colleagues working in the mental health and suicide prevention sector, the data presented a different and thought-provoking perspective.”
Other insurance companies and organisations are also responding to mental health challenges. Most recently, TAL has partnered with SANE to expand access to mental health support, including digital services and a peer recovery pilot program for claimants. nib has teamed up with My Mirror to offer policyholders AI-driven mental health screening and initial consultations with psychologists. AXA has co-produced a documentary, “Group Therapy,” to encourage open discussion of mental health.
CALI is developing a new assessment framework for mental health claims, with input from medical and industry stakeholders. The State Insurance Regulatory Authority (SIRA), icare, and SafeWork NSW have committed funding to establish Mentally Healthy Workplaces Australia, a new national centre for workplace mental health.
These developments underscore the insurance sector’s growing focus on mental health, as companies seek to address rising claims and support the wellbeing of policyholders and the broader community.
