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Australian Insurers Address Surge in Mental Health Claims

Industry Re-evaluates Policies Amid Increasing Mental Health-Related Claims

Australian Insurers Address Surge in Mental Health Claims?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.

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

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

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Subrogation:
An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.