In its annual report for FY2024–25, life insurer TAL has detailed that 21 per cent of accepted claims were related to mental health.
TAL has released its Our Contribution 2024/25 report, which highlighted that the insurer had paid $4.7 billion in claims to 54,357 customers. This is in part, according to the report, due to the “reimagine claims” program that TAL ran over the past financial year.
Included in this program was TAL’s new “Lodge My Claim” platform which saw an increase of 64 per cent of customers lodging online claims.
The report also noted that TAL’s new GenAI tool is being used to help “claims teams rapidly access the information they need, enabling our people to spend more time supporting customers”.
“We’re reimagining claims, using emerging technology to improve the service our customers and partners experience with us while keeping the personal approach that’s integral to how we help,” said TAL chief claims officer Georgina Croft.
According to the report, the most common reason for accepted claims were for mental health conditions, accounting for 21 per cent of all claims. Cancer also remained high, with 17 per cent of all accepted claims, along with injuries and fractures (15 per cent).
Like many life insurers at the moment, claims surrounding mental health issues are on the rise for TAL, and as highlighted before, represent the largest portion of claims in the last financial year.
With many insurers struggling to keep up with the demand, TAL said it has looked to integrate mental health services into its claims systems. It also reported that through it, had engaged 2,550 claimants for support through “TAL Health for Life”, up 27 per cent on the previous year, with 80 per cent of program participants achieving a return to health or work outcome.
“We’re investing in prevention initiatives because early action leads to better health outcomes. This makes good health and business sense,” said Dr Priya Chagan, general manager, health services, TAL.
Central to the report is TAL’s risk management strategy. The life insurer highlighted what it calls its “four pillars” to good risk culture:
- Governance and leadership, which TAL stated can provide “effective oversight” and allow leaders to role model for other employees.
- Expectations and accountability, with clearly defined roles and responsibilities for all.
- Organisational practices, including “clearly articulated and well-understood RMF supported by policies and procedures and three lines of accountability”.
- Capability and performance, with TAL stating its employees are “enabled and equipped” to identify and manage risk as well as being assessed and awarded based on risk outcomes.
“The execution of this framework requires a collective approach that is sustained and continuously improving,” TAL stated in the report.
“Expected risk behaviours are established through training, ongoing assessment of how our people effectively manage risk within their role and feedback loops including employee surveys.”
Mental health is 21% of all TAL’s claims across all products. But according to the report 72% of those mental health claims are for IP and 25% for TPD.
One wonders what proportion of total IP and TPD claims are now for mental health? Obviously much more than 21%. It is probably more than half. Which is a staggering increase in a short period of time.
Yet TAL and the other big insurers do absolutely nothing meaningful to stop the runaway train of mental health claims. “Engagement programs” are PR fluff, not meaningful action.
The runaway train is heading for a mighty and sudden crash.