Zurich mental health claims double over 12-month period

As attention is focused on Mental Health Awareness week from 10-16 May, insurer Zurich reports that the proportion of income protection claims caused by mental illness doubled in 2020. More than one in four (27%) were triggered by mental health conditions last year, compared to 13% in 2019, making it the most common cause of claim.

Around £1.7m worth of payments were made to customers (of individual policies) who claimed on their policies, while nearly one in four (18%) accessed Zurich Support Services, with the majority (82%) seeking clinical support for conditions including depression, stress and anxiety. This is a free benefit to all policy holders and provides access to counselling as well as 24/7 advice and signposting on lifestyle issues.

Zurich data also shows that 28% of all new group income protection claims last year were for mental illness, making it the second most common reason for people seeking support, after cancer. This is cover that is provided by an employer as part of an employee’s benefits package. Central to the product is extensive specialist rehabilitation support provided by an in-house team with wellbeing services, such as counselling, virtual GP and health management tools.

Data from HSE estimates that mental illness accounts for the majority (around 17.9 million) of lost working days and is estimated to cost the economy around £105.2 billion each year.¹

Commenting on the data, Nicky Bray, Zurich’s Chief Underwriter for its life business added, “We know around one in four of us² will experience a mental health problem at some point in our lives which means it is vital that products such as life and income protection insurance are available to as many people as possible. For customers who share a history of conditions with us, such as depression, stress and anxiety - the vast majority are offered cover and the valuable support that comes with it.”

“To help boost uptake, we continually look to simplify the application questions and only request further information when needed to give a fair decision, making the process of buying life insurance easy to understand and quick to apply for. We are also progressing various initiatives as part of our work with the ABI on the mental health standards for the industry.”

Supporting customers with mental health challenges

• Vulnerable customer network established across Zurich with extensive training completed across 2020 to help support our customers including those who are facing difficulties with their mental health. This includes signposting to relevant organisations and charities for further expert help.
• Zurich Support Services are available to all customers (not just those who’ve made a claim) and includes access to free professional counselling services and round the clock access to a help line on issues ranging from bereavement to managing debt.
• Zurich is recognised as a ‘Disability Confident Leader’, the first in the insurance market, and has secured the highest possible accreditation level for the second time. This has involved work to improve access to its products and services for those with disabilities.
• The Valuable 500 - In 2019 Zurich was the first insurer to join this movement by committing to put disability on its leadership agenda. Signing up to the pledge is a natural extension of work already underway by Zurich to support its customers and employees with disabilities.
• Zurich’s Accessibility and Inclusion Network (AIN) – is now in its 6th year with 120 members. It was set up to promote the inclusion of employees with disabilities and mental health challenges across the UK.
• PurpleSpace member – Zurich networks with and learns from other organisations to develop best practice and improve services.

¹ Sourced from at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/215808/dh_123993.pdf
² Mind, the mental health charity