Australian Life Insurers Develop Comprehensive Mental Health Action Plan

Over the next 12 months, CALI will work on creating a new assessment framework for mental health claims. This effort is part of a broader industry-wide initiative to better align disability insurance coverage with contemporary medical evidence and return-to-work practices.

Christine Cupitt, CEO of CALI, emphasized the industry's responsibility to act on the growing mental health crisis. She noted that the new framework aims to bring greater consistency across the industry, addressing feedback from customers and consumer advocates who feel the claims process can be more transparent and easier to understand.

This action plan comes in response to the increasing number of mental health-related claims, which have significantly impacted the sustainability of Total Permanent Disability (TPD) insurance products. By developing a standardized and transparent approach to mental health claims, the industry seeks to ensure that life insurance remains accessible and affordable for all Australians.