The Actuaries Institute is urging the insurance industry to invest more time and effort in addressing mental health coverage concerns.

It says in a new green paper that the sector faces “systemic difficulties” and progress is hampered by insufficient data and subjective criteria.

It finds the claims process, which can be long and adversarial, sometimes hinders recovery and leads to “secondary mental harm”.

The paper is wide-ranging, addressing mental health exclusions in travel insurance and problems with total and permanent disability and income protection cover.

The institute accepts insurers need to remain financially stable and solvent, but notes consumers continue to express dissatisfaction with the way the industry deals with them.

Co-author and Finity Consulting Principal Geoff Atkins told insuranceNEWS.com.au the report aims to push the debate forwards and encourage action.

He accepts there are “root causes” for the issues, but believes these are not insurmountable.

“As an actuary, it is very rare that you put up your hands and say we can’t move forwards on this issue,” he said.

“While it’s not easy, if you are committed you can work through the different stages.

“It is our view that this is a genuine issue in our society and our economy, and it behoves the insurance industry to pull its weight.

“Many have been working hard and improvements have been made, but some aspects would be more effectively developed on an industry-wide basis.”