Mental health claims are rising, changing both the profile and complexity of income protection claims facing the superannuation industry.
Mental health has shifted from an emerging concern to a defining risk across superannuation claims. With one in five Australians experiencing mental ill‑health each year, mental illness is now the single largest cause of TPD claims—accounting for around one in three payouts and driving a sharp rise among members in their 30s. Insurers are paying more than $2.2 billion annually for mental health claims, nearly double five years ago, turning a public health challenge into a material affordability issue for funds. As pressures compound across insurance, disability and income protection schemes, the growing mental health burden is amplifying complexity, cost and risk across the claims ecosystem.
Claims environments across superannuation, income protection and workers’ compensation are under growing pressure. Legislative reforms in several workers’ compensation schemes are reshaping access to benefits, driving increased reliance on income protection within superannuation as a critical source of income support.
Historically, workers’ compensation has provided long‑term income replacement following workplace injury or illness. Recent reforms introduce two significant shifts: stricter access to claims, making them harder to lodge and sustain, and shortened benefit durations, with long‑term support increasingly capped at around 130 days on average, rather than multi‑year or lifetime payments. As a result, income replacement needs may no longer be fully met within the workers’ compensation system, placing greater pressure on income protection through super.
“Superannuation is fast becoming the safety net of last resort, and income protection claims are rising in both volume and complexity. When workers compensation settings shift, behaviour across the entire system changes. If you operate in super, this isn’t a future risk—it’s a current one. Our latest white paper helps funds, trustees and insurers understand what’s coming, what it means for sustainability, and how to act, before pressure turns into impact.”
Since 2015, EML has partnered with some of Australia’s leading superannuation funds, trustees and administrators to manage both insured and uninsured claims.
Our deep understanding of income protection (IP), total and permanent disability (TPD), and death benefit claims enables us to design and implement tailored claims management solutions.
Our strong, long-standing relationships highlight the success of our approach. By leveraging our experience and expertise, EML continues to enhance its reputation as a trusted industry partner. From managing complex income protection, TPD claims and death claims to exceeding industry benchmarks for timeliness and decision-making accuracy, EML’s proven track record highlights our commitment to excellence.
Whether it’s supporting trustees, engaging members, or ensuring compliance with regulatory standards, EML continues to drive better outcomes for members and achieve significant financial savings for insurers.
To learn more about our offering to Superannuation Funds, Administrators and Trustees, contact our team:.
Group Executive, Strategy & Growth
d.walton@eml.com.au
General Manager, Insurance Solutions
c.wild@eml.com.au
