Proactive steps needed to change the stigma when it comes to insurance.
As the world observes International Day of Persons with Disabilities on 3 December, Investec Life is encouraging South Africans to shed the stigma that surrounds mental health and take charge of their wellbeing by seeking treatment, particularly as conditions like anxiety and depression increase.
“Today 1 in 8 people are living with a mental health condition,” says Sinenhlanhla Sithomo, Head of Insurance Business at Investec Life. “As a life insurance business, we have a responsibility to support our clients and help shift the perception that mental health is something to be ashamed of.”
“There are multiple factors that can affect a person’s mental health, from stressful life events to internal factors like immunology and genetics,” says Sithomo. “However, regardless of the underlying cause, we also understand that living with any mental health condition can cause challenges both at work and at home.”
Sithomo adds that social issues such as crime, rising inequality, and the global geopolitical climate, characterised by wars, polarisation in world views, and multiple political crises, also add to the psychological and emotional strain we experience. Additional reasons for why we see mental health deteriorating could be attributed to factors like excessive social media usage, isolation, or loneliness.
“An analysis of the statistics from large South African insurers shows that claims for mental health conditions account for 18% of disability claims paid out and is the third highest cause of disability claims just behind musculoskeletal and cancer claims,” elaborates Sithomo. “The concern is that the complexity surrounding mental health conditions and the link to other physical conditions and symptoms still disguises the true extent of mental health issues among the population. As such, we expect to see psychology-related disability claims to continually increase over the next decade.”
This is a major concern as mental health conditions carry enormous economic consequences, contributing to productivity losses in the workplace, while exerting strain on the already pressured healthcare system. “Health economists have estimated that unaddressed mental health conditions cost the South African economy approximately R161 billion per year, while globally depression and anxiety alone cost the global economy nearly US$ 1 trillion according to the WHO.
This doesn’t account for the indirect costs associated with mental health conditions. For example, major depression can also suppress appetite or result in overeating, which can then lead to conditions like diabetes and obesity. As such, while mental health issues are often the root cause of weight gain or ill-health, our healthcare systems treat the physical condition while often neglecting the underlying mental health issue,” continues Sithomo.
Given the precarious state of our mental health and the consequential knock-on effects for society, public and private sectors not only need to enhance efforts around mental health, but ensure support is given to people who want to take charge of their mental health and seek help.
This is happening globally, with more governments and companies realising the importance that mental health plays in achieving development goals. As such, mental health is now included in the Sustainable Development Goals (SDGs) and is central to the 2023 International Day of Persons with Disabilities theme of "United in action to rescue and achieve the SDGs for, with and by persons with disabilities".
Key elements in achieving the SDGs related to mental health include transforming attitudes, actions and approaches to promote and protect mental health, and broaden access to treatment and care for those in need. Such a proactive approach and investing in initiatives that improve mental health are expected to deliver significant economic impact.
“While the costs associated with the deteriorating state of mental health are significant, companies stand to gain more value by giving employees the help they need, especially since effective treatment for many psychological conditions can be achieved within a relatively low cost,” states Sithomo.
From a life insurance perspective, providing access to affordable and effective insurance cover for treatment is the starting point. Financial protection against the cost of lifestyle adjustment, as seen with any other disability, is important to recognise and provide appropriate cover for. Examples of such lifestyle adjustments could include costs for personnel support to take care of your family or paying off major debts (a mental health obstacle in itself).
In the event of a permanent disability, having a lump sum cover payout helps with these lifestyle adjustments while an income cover payout helps to continue paying for regular living expenses and offers you an opportunity to keep living a fulfilling life.
“To be fully supportive, life insurers can further encourage disclosures around mental health by taking into consideration aspects such as the social support structures individuals have in place to negate the premium loadings during the underwriting process,” recommends Sithomo. “This is the biopsychosocial approach to mental health needed in the life insurance industry.”
Providing disability cover as a standalone product without life cover is another important consideration that can broaden accessibility and financial protection against the effect of mental health conditions.
“Extending support to claimants goes beyond just paying out the cover at the claims stage. We should include providing support and counselling to those diagnosed with conditions like cancer or other critical illness, or supporting family members to cope during this period, so we can break the cycle of mental illness that is currently plaguing society,” concludes Sithomo.
Get the latest issue of FAnews