The Insurance Council of Australia (ICA) has voiced support for a Productivity Commission proposal to conduct regular mental health surveys.

It says the measure would provide insurers with “better data” for pricing risks associated with mental health conditions.

The Productivity Commission flagged the idea in its draft report on mental health that was released for consultation last October, suggesting that a survey be undertaken no less frequently than every 10 years.

According to the ICA submission, the vast amount of public statistical data collected so far are “information poor” and not useful for underwriting purposes.

“We agree with the report’s recommendation that routine national surveys should be conducted,” the ICA says.

“Better data is needed for insurers to better price and assess risk and create more narrow exclusions in relation to mental health claims.

“Data needs to be collected and organised more effectively to provide actionable insights into mental health that insurers can use to better price risk and refine underwriting practices, making insurance more affordable and accessible.”

Additionally, the industry is keen to work with governments to develop better data collection strategies, ICA says.

ICA also supports in-principle the Productivity Commission’s short-term proposal that workers compensation schemes should provide clinical treatment for mental health-related claims, regardless of liability, for up to six months.

But the provision of treatment must be accompanied with explicit monetary limits as well as appropriate controls for insurers to ensure scheme sustainability.

“It is critical the insurance industry be included in any discussions developing the appropriate controls. Further, for the draft recommendation’s objective to be effective, it will be important that the supply chain for services is robust to cope with potential demand,” ICA says.

The Productivity Commission will hand its final report to the Government by May 23.

Click here for the draft report.