AIA NZ Pays $829.6M In Total Claims In 2024

Latest Claims Compass spotlights impact of poor mental health

Leading life and health insurer AIA NZ today released its second latest Claims Compass, reporting $829.6M in total claims paid for the year ended 31 December 2024 – a $95M increase on the previous year.

The big jumps are in Life (up $34.6M), Health (up $23.9M) and Trauma insurance claims (up $22.4M), largely driven by rising living, mortgage and healthcare costs.

AIA NZ Chief Customer Officer, Maddie Sherlock says: “What we’re seeing is the impact of customers’ insurance levels increasing alongside inflation. Our products also support sum assured increases for special events like buying a house or having a baby, and for our other products increasing healthcare costs are a significant factor.”

“While customers are seeing the benefit of advances in medical treatments, more treatment options and improved patient experience or outcomes, these innovations are often at a higher cost than established treatments and are passed onto insurers and customers.

“We’re also seeing growing demand for health services due to an ageing population and growth in chronic diseases. In New Zealand, we have observed increased rates of heart disease, cancer, diabetes, and poor mental health, brought about by worsening lifestyle factors such as diet and lack of exercise. These worsening public health trends lead to a higher demand for health services, which puts upward pressure on private health claims.”

Spotlight on mental health

In the previous Claims Compass, AIA NZ highlighted cancer, which in 2023 was responsible for the highest number of AIA NZ insurance claims. In this edition, the spotlight turns to mental health with $25.7M paid towards mental health related claims in 2024, and $8.1M for suicide claims.

The Ministry of Health estimates that around half of New Zealanders may struggle with their mental health at some time in their lives. Poor mental health has been identified as one of the five major non-communicable diseases including – cancer, diabetes, respiratory diseases and heart disease that cause over 90% of deaths in New Zealand as unpacked in AIA NZ’s 5590+ report.

Top 2024 AIA NZ mental health claims:

1. Depressive disorders 44%
2. Anxiety / panic disorders 14%
3. Post Traumatic Stress Disorder 4%
4. Chronic Fatigue Syndrome 3%
5. Chronic Pain Syndrome 2%

Significantly, the group most affected by – and claiming for mental health related support – are customers aged between 40 and 59 ($17.7M), particularly men.

“This big jump in claims for this age group reflects their life stage which is likely to be impacted by the weight of increased family, financial and professional responsibility and high demands upon their time,” says Maddie.

“This is the age where your overall health starts to be impacted by your nutrition, sleep and activity levels versus when you were younger. And your risk of lifestyle diseases increases. These changes can of course impact your confidence and overall mental wellbeing.”

Men aged 40 to 49 ($6.4M+) (and then those aged 50 to 59 ($5.6M+)) have the highest claims for poor mental health. They are also the age group with the highest suicide-related claims.

While the number of claims may be lower than for men this is also a time when women are significantly impacted. Many women are entering perimenopause at this stage of their life which can lead to depressive episodes as they navigate physical and emotional changes, and similar to men, are balancing multiple responsibilities and demands on their time.

According to Shaun Robinson, Chief Executive at the Mental Health Foundation, early adoption of lifestyle habits that strengthen reliance and boost wellbeing, can help people navigate life changes and events.

He says, “Our society is only starting to recognise the lifestyle actions that people can take to support mental and emotional wellbeing and resilience. The Five Ways to Wellbeing framework provides a holistic approach focusing on all aspects of mental health – social connectedness, giving back, mindfulness, movement and curiosity.

“If we maintain lifestyles that build healthy levels of hormones and we also focus on things such as healthy eating and good sleep habits, our overall mental health will be much stronger throughout our lives.”

The right support when you need it

Thankfully, the language around mental health has shifted significantly in the last few years and conversations around mental health and access to support has improved.

Says Maddie, “At AIA NZ we recognise that mental health exists on a spectrum, and periods of distress are a normal part of life (post-natal depression, grief after the loss of a loved one) and as our stress levels shift and change depending upon our life stage.”

“We’re focused on ensuring we support the mental wellbeing of all our customers – when applying for cover and if they need to make a claim. We pride ourselves on our Mental Health Case Management with a dedicated team to help customers with mental health claims recover and return to work.”

AIA NZ spends more than $1.3M+ on rehabilitation each year, with more than 53% of this spent on supporting customers with mental health conditions. This includes funding psychology sessions, occupational therapy and nutritional programmes, and home visits.

Says Maddie, “We make about 800 home visits per year to ensure we meet the individual needs of the claimant and their family. These home visits and associated support are bespoke to the individual and takes into account their unique circumstances, family situation, history and culture into consideration and looks to build a plan to find the best way to assist them. For example, if someone has a love of going to the gym and this is something that helps them to feel more energised, helping them build regular workouts into their ongoing plan may be relevant.”

Through its partnership with the NZ Mental Health Foundation, AIA Vitality members and AIA NZ employees have the opportunity to engage, be inspired and help raise funds for a better mental health system in Aotearoa New Zealand.

In addition, the AIA Vitality Mental Wellbeing Benefit empowers members to support their mental fitness, offering evidence-based activities to help manage stress, overcome challenges and build greater resilience.

Says Maddie, “At AIA NZ, we’re committed to helping people live Healthier Longer Better Lives. While we cannot control what happens in our lives, knowing that you have the right support and cover when you need it, can make all the difference.”

The Mental Health Foundation’s Five Ways to Wellbeing framework

1. Connect – We are social animals, and we need to relate to people regularly in close relationships and through a sense of belonging within our community. This could be through a workplace, a sports club, a marae, a church or a neighbourhood.
2. Give – being there for others with kindness boosts our connection and strengthens our sense of purpose and usefulness. It turns out “to Give IS to receive”.
3. Take Notice – taking time to pause, take some slow breaths and appreciate the little things that give you joy, and to be in the moment. Find your way to “take time to smell the roses” every day.
4. Move – our bodies and minds are connected and just a small amount of regular light exercise will boost your mood. You don’t have to be an athlete, do what you can, and enjoy what you do.
5. Keep Learning – our minds are designed to be inquisitive and to take on new ideas and information. This might be a new sport or a hobby, hearing a new idea from a friend, listening to a podcast, or learning a new skill.

Notes

The AIA NZ Claims Compass infographic is available to view here.

AIA NZ customer Dean Blair has had first-hand experience with managing a depressive disorder. A video of his story and how the AIA 360 Care programme helped him to turn his life around is available here.

About AIA New Zealand

AIA New Zealand is a leading life insurer with almost 40 years’ experience in the New Zealand market and is part of the AIA Group, the largest independent publicly listed Asia-Pacific life insurance group. With a unique customer value proposition focused on life, health and wellbeing, AIA New Zealand’s purpose is to help New Zealanders live Healthier, Longer, Better Lives.

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