TAL says mental illness is an “era-defining priority” as more Australians experience depression and other psychological ailments.

The life insurer’s mental health-related benefit payments reached nearly $1.2 billion in the year to March 31, and it was the leading cause of claims during the period.

More than 12,000 Australians claimed for mental ill health in the period.

“The claims we receive provide a window into what our customers are experiencing and it is our view that mental ill health has become the defining priority of our era – for TAL, our industry and the communities we serve,” TAL said.

“It is our leading cause of claims for the fifth consecutive year, and we’re evolving the support we provide – including leveraging the expertise of new and existing partners to ensure our work is grounded in evidence and our customers’ actual experience, external advocacy and developing products with a bias towards recovery to help customers return to wellness and work.”

Product redesign, and prevention and recovery support are among actions TAL is taking.

Last year, the insurer introduced a support option to its total and permanent disability offering that provides eligible claimants a partial payment of 20% of their sum insured each year, giving them financial support and time to recover, while retaining full protection where needed.

“We reflected on claims outcomes and asked customers, advisers and clinicians how TPD insurance could better support how Australians live and work today. For example, for some Australians experiencing mental ill health, fatigue or functional disorders, a single lump sum may not always meet their recovery needs.”