The Investment and Financial Services Association (IFSA) and health bodies have renewed a memorandum of understanding that helps people with mental illness to get life and income protection cover.

Now the push is on for general insurers to show similar understanding when it comes to underwriting for the mentally ill.

IFSA CEO Richard Gilbert says the association’s data shows a clear trend that people with a mental health condition are experiencing better access to cover, but the industry accepts that more needs to be done.

About 70% of IFSA members offer cover to people with mental illness – a substantial increase on previous years.

Mental Heath Council of Australia (MHC) CEO John Mendoza has applauded the move, saying insurance accessibility has improved since the memorandum was first signed two years ago. Now he wants general insurers to ensure the mentally ill have reasonable access to other types of cover.

“It is important now that financial planners, who are often the first point of contact for a consumer seeking life insurance or income protection, are better informed on mental health issues and the changes in industry practices,” he said.

“Equally we want to see the general insurers working with us to ensure people with mental illness have reasonable access to things like travel insurance.”

The main groups involved in the memorandum – among them IFSA, MHC and national depression and anxiety initiative Beyondblue – have made a commitment to ongoing reform aimed at improving access to insurance, ensuring equitable treatment of the mentally ill by the insurance industry, and reviewing progress after a year.