FROM ADD-ON TO ESSENTIAL

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The experiences we all went through during the pandemic have affected the way we approach a number of aspects of our lives.

In a professional context, flexible working has become a norm and combined with staff shortages, is now a fundamental part of the way many businesses operate.

Of course, offering incentives such as flexible working, where possible, is just one way in which businesses are putting staff at the centre of their operations.

The pandemic brought home just how reliant businesses are on their people, and in turn just how vulnerable many of those people are.

“COVID-19 really highlighted the importance of companies looking after employees’ health and wellbeing,” says David Foote, National Development Manager at AHI.

“We’re seeing a lot more enquiries around understanding how comprehensive cover is, and what additional value-add tools are available to ensure employee safety – for example, no mental health exclusions.”

And as a result, the role of accident and health insurance has increased in significance.

Foote continues, “A&H has previously been seen as an add-on to corporate programs, whereas now it has become one of the most critical risk management insurance portfolios.”

COVERING MENTAL HEALTH – AS WELL AS PHYSICAL

The way that mental health is viewed in society has changed dramatically over the past couple of decades, and COVID-19 firmly underlined that mental health should be given the attention it’s always required.

We’re now far more aware of the impact of mental health; for businesses, there’s far more onus than ever before to take responsibility for employees’ mental health.

Accident And Health Tips For Brokers

Robyn Hassell, Claims Manager, Accident & Health, Liberty Specialty Markets, shares the following tips for brokers.

Encourage clients to develop broad support programs.

Promote early intervention and support.

Encourage more openness and acceptance of mental health issues. Ensure processes are in place to support employees via EAP, training and education.

Where employees are travelling, have pre-travel advice information and support to best prepare employees to travel.

CASE STUDY: PRE-EXISTING CONDITIONS

Pre-existing conditions are always a challenge in accident and health. David Fogarty, Managing Director of Point Underwriting Agency.

“We do a large scheme in the allied health space, and we had a lady who had a prior mental health condition – which certainly isn’t uncommon in that space – and had made a successful claim for PTSD. Due to a death in the family, she suffered another mental health issue and lodged a new claim. I think traditionally that claim may have been declined because it was another mental health claim. However, because it was a new mental health condition, that claim was accepted and paid out.”

“There’s much more awareness of mental health needs and much more acceptance – as it should be,” says David Fogarty, Managing Director of Point Underwriting Agency.

“The stigma of lodging a mental health claim is no longer there, like it used to be.”

With good reason, too. Mental health is a hugely important issue, and organisations and accident and health insurance providers are responding.

“We are all reading about how COVID-19 has affected resilience and driven higher rates of mental illness,” says Robyn Hassell, Claims Manager, Accident & Health, Liberty Specialty Markets.

“Mental health conditions are the most common driver of workers compensation claims and, as accident and health insurance focuses on people’s wellbeing, the issue has always been prominent, and COVID-19 has further negatively impacted this.”

However, it’s an area the industry as a whole is already doing more in.

“Brokers, insurers and clients are more active in promoting mental health issues than ever before, including supporting mental health charities and support groups,” says Hassell.

“We’re also seeing a number of highprofile Australian sports stars talking about their mental health challenges, and this is opening up discussions on the issues.”

MENTAL HEALTH – A PRIMARY OR SECONDARY CONDITION?

While the challenges of the past few years have naturally impacted workers’ mental health, data shows that the majority of mental health claims are a consequence of another event.

“Our claims data is showing mental health claims are increasing but appear to be a secondary condition,” says Foote. “For example, serious injury or illness that has extended recovery or delayed return-to-work leads to increased mental health impact.”

And this creates a challenge for the industry, says Hassell.

“The insurance industry has traditionally lacked comprehensive data to adequately understand the true impact of mental health on policy pricing. Part of the challenge of this is whether you have mental health claims on their own, or mental health claims that are secondary to other conditions, such as bodily injury claims. This makes it difficult to assess the true impact of mental health conditions in a portfolio.”

Foote says the industry has had to respond accordingly.

“A&H providers have had to adapt their cover and engagement style to accommodate their clients’ changing needs and expectations.”

An Opportunity For Brokers

With increased understanding and appreciation of not only mental health, but also the broader need to look after workers and create an increasingly desirable environment for them to work in, accident and health insurance offers significant opportunities.

“The statistics show that about 80 per cent of Australians don’t have income protection cover, so the opportunity is huge for brokers to work with clients to add accident and health to their insurance mix,” says Fogarty, whose business works primarily with brokers to provide cover for self-employed tradespeople.

“I think it’s the old analogy – people will insure their car, but they won’t insure themselves. I think the way the economy is going at the moment, there’s uncertainty, and people need to have their income protected.”

It’s an increasingly important way for businesses to not only look after their employees but increase business resilience. And with the uncertainty and volatility that surrounds us every day, that’s surely a win-win.

CASE STUDY: BUILDER SUFFERS BRAIN INJURY AND LOSES LIVELIHOOD

A builder running his own company bumped his head while working under a house, and immediately suffered from a stiff neck and severe headaches, which doctors couldn’t diagnose. After noticing behavioural changes, his family encouraged him to seek a second opinion, and he was directed to emergency, where it was discovered that he had a suspected brain injury and potentially life-threatening bleeding on the brain.

After emergency surgery, he spent more than two months in hospital, and the brain injury meant he lost the executive functions to run his business.

Thanks to the policy his broker had encouraged taking out upon the birth of his first child, AHI Assist was able to support the family through the crisis, providing weekly injury benefit payments totalling more than $210,000 to ensure his wife could undertake retraining and become the family’s primary income earner.

CASE STUDY PROVIDED BY AHI

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