The Public Interest Advocacy Centre (PIAC) has called for more transparency from insurers in relation to their use of actuarial and statistical data.

It also wants the General Insurance Code of Practice to include a commitment by members to regularly report to the Insurance Council of Australia (ICA) on the processes, procedures and policies they have implemented to ensure compliance with anti-discrimination laws and to meet their code obligations, with reference to the “Guide on mental health”.

PIAC made the recommendations in a report today called Mental Health Discrimination in Insurance.

While the report focuses mostly on life insurers, it also touches on travel insurance and improvements made since the Victorian Equal Opportunity and Human Rights Commission (VEOHRC) investigated mental health discrimination in travel products.

The investigation lasted from July 1 2017 to April 19 2018 and by the time the report was finalised, the “party” insurers had removed or taken immediate steps to remove blanket mental health exclusions from their travel products.

The party insurers represented 70% of the travel market at that time.

“The progress made in removing blanket mental health exclusions from travel insurance policies is very welcome and PIAC recognises improvements in recent years in the approach of general insurers and the ICA in their attitude to insuring consumers with mental health conditions,” the report said.

“Notwithstanding the positive changes that have occurred, ongoing monitoring of compliance with disability discrimination laws, and the effectiveness of the commitments made by insurers in the General Insurance Code of Practice will be required.

“Travel insurance policies often continue to exclude pre-existing conditions, so it remains challenging for people experiencing mental health conditions to obtain insurance with sufficient coverage for their needs.”

PIAC says the General Insurance Code of Practice should include a commitment by insurers to regularly review the data they rely on to make decisions to “discriminate” on the basis of mental health and continually seek better data to enable differentiated underwriting of particular mental health conditions.

On the push for transparency regarding actuarial and statistical data, PIAC says the code should require insurers to provide directly to an applicant or insured on request, the actuarial and statistical data and relevant factors relied on to make a decision to decline cover or offer cover on non-standard terms on the basis of disability.

Click here for the report.