Life Insurance Sector to Develop New Mental Health Claims Framework

0

CALI CEO Christine Cupitt emphasized the need for transparency and simplicity in the claims process, responding to feedback from customers and consumer advocates. She highlighted Australia's current mental health crisis, stressing the importance of providing clear guidance on the role of life insurers in supporting affected Australians.

The Council has noted that mental health conditions represent the fastest-growing cause of life insurance claims. While insurers remain committed to aiding Australians with severe conditions that impede their ability to work, Cupitt clarified that life insurers, similar to the National Disability Insurance Scheme and workers' compensation programs, cannot be the solution for every case.

An expert panel will be set up to advise on developing the framework. This panel will comprise medical practitioners, legal specialists, rehabilitation and return-to-work experts, life insurance professionals, and individuals with lived experience of mental health issues. This diversified team aims to ensure the framework is comprehensive and adequately addresses varied perspectives and expertise.

Early next year, a three-month targeted consultation will take place, incorporating input from various stakeholders, including consumer representatives, mental health advocates, superannuation trustees, financial advisors, and medical professionals. This phase of consultation is key to refining the framework to be as inclusive and practical as possible.

In parallel, CALI’s initiative will run alongside the independent review of the Life Insurance Code of Practice, spearheaded by Peter Kell. A consultation paper concerning this review is anticipated shortly. The findings from this review will inform the new framework's development, and CALI will maintain engagement with Kell throughout the process.

Published:Tuesday, 21st Oct 2025
Source: Paige Estritori

Share this news item:

Insurance News

Clear

Life Insurance Sector to Develop New Mental Health Claims Framework

21 Oct 2025: Paige Estritori

A significant update is on the horizon for mental health claims within the Australian life insurance sector. The Council of Australian Life Insurers (CALI) has announced the creation of a new assessment framework. This move will be developed in collaboration with consumer advocates, medical specialists, and other key stakeholders. The forthcoming plan aims to establish minimum standards for evaluating claims, ensuring that they are based on consistent and evidence-based criteria. - read more

WFI and AgCarE Join Forces to Reward Sustainable Farming Practices

21 Oct 2025: Paige Estritori

In a significant move towards promoting sustainable agriculture, WFI Insurance has partnered with AgCarE, a certification program developed by AgForce, to offer premium reductions to farmers who achieve AgCarE certification. This collaboration aims to enhance financial, environmental, and social outcomes for Australian farmers and rural communities. - read more

Rising Insurance Costs Challenge Australian Farmers as Extreme Weather Intensifies

21 Oct 2025: Paige Estritori

Australian farmers are confronting a significant surge in insurance premiums, a trend largely attributed to the increasing frequency and severity of extreme weather events. Over the past few years, many farmers have reported that their insurance bills have more than doubled, with annual premiums exceeding $100,000. - read more

Diversifying Small Farms Open New Avenues for Insurance Brokers

21 Oct 2025: Paige Estritori

The landscape of Australian agriculture is evolving as small commercial farms increasingly diversify their operations to enhance income and sustainability. This shift presents both challenges and opportunities for insurance brokers, as new ventures introduce complex risk management needs. - read more

Addressing the Surge in Collision Risks for Australian Fleet Operators

21 Oct 2025: Paige Estritori

Australia's transport and haulage sector is currently navigating a period of heightened operational risk, marked by an uptick in both the frequency and severity of motor collision claims. This trend underscores the pressing need for fleet operators to adopt proactive risk management strategies and leverage advanced insurance solutions to safeguard their operations. - read more

Click for more Insurance News