Australian business loses more than $6.5 billion a year by failing to provide early intervention and treatment for employees with mental health conditions, Chartered Secretaries Australia estimates.

A survey of more than 5000 workers found 25% took time off each year for stress-related reasons.

But companies do not perceive it as a risk to their organisation, Chartered Secretaries Australia CEO Tim Sheehy says.

“Despite widespread commentary on the extent of mental health in the community, it still has not registered on the corporate radar,” he said.

“Concern about mental health in the workplace seems to be at a similar stage as we were with OH&S in the construction industry 30 years ago, when one or two fatalities were widely considered as an unfortunate cost of doing business.

“That degree of indifference would simply not be tolerated today.” 

AMP Director Underwriting & Claims Policy Bernadene Gordon told insuranceNEWS.com.au mental health is a leading cause of disease and injury claims in Australia.

“The life industry has significantly improved access to life insurance for people who suffer from, or have a history of, mental illness,” she said. “Today many people who have a history of mental illness are able to access income protection cover at standard rates.

“This is a significant change from 10 years ago, when many people were declined insurance based simply on a disclosure of mental illness.”

Financial Services Council data gathered in 2009 showed mental illness caused 19% of open income protection and group salary continuance claims, Ms Gordon says.

For the same period, mental illness claims represented 26% of total income protection and group salary continuance costs.

“For the life insurance industry these disorders represent a significant cause of claim,” Ms Gordon said.

Swiss Re Life and Health Head of Research and Development Daniel Ryan told insuranceNEWS.com.au the life insurance industry has tools – including genetic testing – it can use to identify early stages of a mental illness.

“In terms of predicting the probability of illnesses such as Alzheimer’s, genetic testing will have a huge impact,” he said. “It will help life insurers focus on catching and treating mental illness at an early stage.”

But Mr Ryan says a lot will depend on a person being willing to take a test and how much information is added to their medical record.

“I do think it is the type of information we do need to collect, but there are questions over disclosure that will need to be addressed,” he said.