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Mental Health Drives Surge in Insurance Claims
Mental Health Drives Surge in Insurance Claims
Focusing on the six-month period ending in September, TAL reports that depression, post-traumatic stress disorder, and similar psychological issues constituted 29% of all claims. These figures overshadow claims related to physical injuries and fractures, which comprised 18%, and musculoskeletal and connective tissue disorders, accounting for 16%.
During this timeframe, TAL disbursed an impressive $2.3 billion in claims to support over 36,200 customers and their families. The increase from the previous year's $2 billion paid to 32,456 claimants underscores the expanded need for mental health-related payouts.
A crucial trend observed is the rise in claims associated with income protection and total and permanent disability, pointing to the critical role play by life insurance in the realm of mental health care. TAL's chief claims officer, Georgina Croft, emphasized this unique facet of life insurance. "Life insurance offers more than financial support when a loved one passes away,” she remarked. “Helping Australians during their toughest times with care and compassion is the most important thing we do."
The approach TAL has taken includes robust support systems beyond mere financial assistance. Clients gain access to a suite of services designed to aid recovery, such as a virtual mental health tool that provides access to psychiatric assessments, and a dedicated health and rehabilitation team in-house.
Kate Tran, a notable claims recovery and support specialist, elaborated on this integrative approach: “By connecting a person with the services they need early in the claims process – and removing the financial burden of paying for them – we can help customers on a path to recovery faster.” This reinforces the evolving role insurers are playing in proactively facilitating mental health support.
The increasing demand for mental health support within the insurance claims process illustrated by these statistics from TAL, which were originally reported by the CourierMail, points to broader societal trends and the need for continued progress in mental health care integration within financial services. By prioritizing such initiatives, insurers are stepping beyond traditional roles, heralding a shift where emotional and physical rehabilitation is as pivotal as financial relief.
Published:Wednesday, 11th Dec 2024
Source: Paige Estritori
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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.