Mental health claims surge amongst Aussie millenials, boomers

Men are 60% more likely than women to file such claims.

There was a 732% rise in total and permanent disability (TPD) claims for mental health in the 30 to 40 age group over the past decade in Australia, the largest spike across all demographics, revealed a KPMG report.

The “Australia’s Mental Health Check Up”, commissioned by the Council of Australian Life Insurers (CALI), revealed a sharp increase in Australians leaving the workforce permanently due to mental health issues, particularly among those in their 30s.

The average age of individuals leaving work permanently due to mental health conditions has dropped from 49 to 46 years over the past decade. In contrast, the average age for claims related to physical disabilities has remained steady at 49 years. 

Men are 60% more likely than women to file such claims for mental health conditions.

Mental health conditions now account for nearly 80% of the overall increase in permanent disability claims in Australia over the past decade, growing at an average annual rate of 10%, compared to 0.5% for physical disability claims. 

Life insurers, who provide significant financial support to affected individuals, warn that the escalating claims could challenge the affordability and sustainability of life insurance.

KPMG Partner and report author Briallen Cummings emphasized the severity of the trend, citing an increase in both the number and seriousness of mental health conditions reflected in life insurance data. 

“This is far bigger than us. While governments are already thinking seriously about Australians’ mental health, we now have further evidence that our community needs more including a stronger and earlier safety net to keep people from falling through the cracks,” said CALI CEO Christine Cupitt.