Life Insurers Urge Government Action on Mental Health Funding

Life insurers in Australia have joined forces with mental health advocates to press the federal government to honour its $1 billion pledge for mental health initiatives.

The Council of Australian Life Insurers (CALI) is among the key signatories of an open letter organized by Australians for Mental Health, urging swift action on funding allocation.

The open letter applauds the Albanese government for its significant financial commitment aimed at enhancing mental wellbeing services across the country. It emphasizes the urgency of activating this funding to enable broader access to mental health care for Australians in need. "A thriving economy relies on a comprehensive approach to mental health as an integral component of national wellness," the letter asserts.

As the government prepares to convene a three-day economic roundtable, the letter calls for a collaborative response to the ongoing mental health crisis. It advocates for enhanced resources in both public and private care systems, focusing on early treatment measures. Additionally, bolstering the mental health workforce is highlighted as a critical area for investment.

Christine Cupitt, CEO of CALI, highlights the economic benefits of prioritising mental health interventions. "Addressing the mental health crisis could emerge as the most impactful productivity reform in Australia this decade," Cupitt states, emphasising the role of life insurers in upholding the nation's financial safety net. However, she notes that people often seek insurance support after depleting other options, making recovery and return to work significantly challenging.

Statistics reveal the gravity of the issue, with mental illness ranking among the top causes of temporary and permanent disability for Australians under 30. The Productivity Commission underscores the economic impact, estimating mental health issues cost the national economy as much as $220 billion annually.

This campaign for immediate governmental action reflects a broad consensus within the financial and health sectors that timely investment in mental wellness is both a societal need and an economic imperative.

Published:Tuesday, 19th Aug 2025
Source: Paige Estritori

Share this news item:

Insurance News

AFCA Upholds Insurer's Premium Increase Amid Consumer Complaint

01 Sep 2025: Paige Estritori

A recent decision by the Australian Financial Complaints Authority (AFCA) has ruled against a homeowner seeking an $18,000 refund from Allianz. The homeowner claimed that the insurer failed to adequately inform her about substantial increases in her optional flood cover premiums. Initially, her monthly payments surged from $369 to $1277 in August 2022, a change she only noticed in March of the following year through her bank statements. - read more

Rising Group Premiums Pose Challenges for Australian Life Insurance

28 Aug 2025: Paige Estritori

Insurance premiums for group life policies with long-term benefits have surged between 15% to 25% on average in the first half of the year, according to a mid-year market update from Marsh Australia. While the steepest increases affected those with adverse claims experiences, short-term rates and premiums for permanent disabilities remained relatively steady. The sector has also become more selective, with insurers adopting stricter underwriting standards, particularly eschewing high-risk industries. - read more

Concerns Arise Over Construction Code Pause Amid Housing Push

28 Aug 2025: Paige Estritori

The federal government's initiative to accelerate housing development by relaxing certain building regulations has raised alarm within the insurance sector. Housing Minister Clare O’Neil announced changes on social media, indicating a strategic pause on parts of the National Construction Code to expedite building approvals and encourage the construction of much-needed homes across Australia. This move comes in response to challenges in the approval process, which often delays construction. - read more

RACQ Insurance Ordered to Increase Payout After Claim Handling Flaws

27 Aug 2025: Paige Estritori

RACQ Insurance has been instructed to bolster a payout to a customer following a ruling by the Australian Financial Complaints Authority (AFCA). The dispute arose after the insurer's handling of a house fire claim lodged by a woman in October 2023 was found lacking. The fire, initiated by scented candles, resulted in significant fire and smoke damage to her home. - read more

ASIC Review Puts Life Insurance Sector Under Scrutiny

26 Aug 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has spotlighted significant shortcomings in the direct sale of life insurance products, urging the industry to reassess its sales practices. The recent review unearthed ongoing issues with remuneration structures, indicating that some insurers still link commissions to sales targets, potentially fostering aggressive sales tactics. The study further revealed a troubling rise in claims disputes, with reported cases more than doubling since 2018, raising concerns about the transparency and trustworthiness of these policies. - read more

Cyber Insurance Articles

Protect Your Data: Cyber Security Measures Every Aussie Company Must Implement

In today’s digital landscape, Australian companies face an increasing threat from cyber criminals. The paramount importance of cybersecurity has never been more evident, with the surge of incidents exposing the vulnerabilities in organizations' digital defenses. As we usher into an era where data breaches and cyber attacks are commonplace, protecting digital assets becomes a crucial part of doing business. - read more

Data Breach Recovery: A Comprehensive Guide for Australian Businesses

Data breaches have become a significant concern for businesses in today's digital landscape. Simply put, a data breach occurs when sensitive, protected, or confidential information is accessed, disclosed, or used without authorization. The implications of such breaches can be far-reaching, affecting not just financial health but also the reputation of businesses and the security of individuals involved. - read more

The Importance of Cyber Risk Management in Modern Business

Cyber risk management involves identifying, assessing, and prioritizing potential risks to an organization's digital assets and implementing measures to mitigate these threats. - read more

Protecting Sensitive Data: Cyber Threat Prevention for Remote Teams

Remote work has seen a significant rise in Australia, especially following the COVID-19 pandemic. More businesses are embracing flexibility, allowing employees to work from home or other remote locations. - read more

Protecting Your Business from Online Threats: The Benefits of Cyber Insurance

In today's digital age, businesses are increasingly becoming more vulnerable to online threats. Cyber attacks are not just limited to large corporations. Small businesses are also at risk and can suffer severe financial losses due to cyber threats. It is essential for small businesses to invest in cyber insurance. Cyber insurance offers protection against online threats, providing financial assistance if a company experiences a data breach, cyber attack, or other forms of cybercrime. - read more

Knowledgebase

Reinsurance:
Insurance that an insurance company purchases from another insurance company to mitigate risk.