- High prices. Even for someone with historic periods of mild depression who is no longer showing any symptoms, much higher premium increases are being applied in comparison to someone with equivalent physical health issues that show no symptoms any more.
- Exclusions. This problem is two-fold. Individuals either face the inability to access insurance that properly covers them, or they think they have cover when they don’t because the exclusions haven’t been properly explained.
- Disclosure. Getting access to the right product is often just too difficult. “It’s hard enough to speak to health professionals about this stuff, never mind insurers,” adds Ms Undy.
The upshot? “Vulnerable people pay more,” she says. “If they can get cover, they stay with the same insurer and pay inordinate premium increases rather than face having to disclose again.”
She adds that group income protection (IP) currently represented “one of the best products for someone with a pre-existing condition and working for an employer that offers this is one of the best ways to ensure peace of mind for anyone with a history of any level of mental health issues”. She called for the conference attendees to consider how to widen access to group IP, particularly among SMEs.
The MMHPI carries out regular polls and recently found that nearly 25 per cent of people have taken over a year off sick due to a mental health issue over the last five years. Less than 10 per cent received help from an insurance policy. How did those without insurance cope? Nearly 70 per cent went without non-essentials, while over 40 per cent borrowed money and spent savings.
The MMHPI is calling for: a review of underwriting and pricing for mental health, ensuring compliance with the Equality Act; shared best practice to ensure understanding of exclusions; an accessible and supportive disclosure environment; product innovations to improve inclusion for people with pre-existing conditions.
3. The industry should work much more collaboratively with specialist wellbeing service providers to support behaviour change and reduce claims.
Mark Twigg, executive director at Cicero Consulting, also speaking at the conference and part of the Department for Work & Pensions (DWP) Access to Insurance Group, echoed these sentiments by also calling for the industry to build better engagement with the SME sector to help strengthen the role of the group risk market.
At the same time though, he made it clear that there is work to be done to ensure much more proactivity by the industry.
He highlighted the fact that around 33m people in the UK are in work, many of whom will have mental health issues of varying degrees, yet only 8 per cent (2.5m) are covered by group IP.
