News eDaily09 Oct 2017

Australia:Mental health claims drag down disability income ops

09 Oct 2017

Rising mental health claims have triggered sharp losses on disability income policies for some of the country's largest insurers.

Concerned by the losses, the Australian Prudential Regulation Authority is carrying out "focused work" on the retail disability income insurance market, which is also known as income protection, industry sources told The Australian Financial Review.

For the year ended June 30 2017, individual disability income insurance across the sector made after-tax losses of A$377 million (US$293 million), an increase over the A$360 million after-tax loss for 2016, according to APRA statistics.

Insurance industry experts told the Financial Review the increasing prevalence of mental health claims has led to sharp losses, driving premiums up by 30%.


 

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