The surge in mental health claims since the COVID-19 pandemic is indicative of a crisis among Canadians, especially Gen Z and Millennials.
According to the 2023 Commonwealth Fund survey, while Canadians’ self-rated mental health has been declining since 2015, the pandemic and economic stressors due to the rising cost of living have contributed to worsened anxiety and feelings of depression.
For one insurance leader, the trend is a complex issue – but one that insurance companies have a responsibility to address.
"The rise in mental health claims makes it critical for us to become more proactive in finding solutions,” said Martha Turner Osborne, chief marketing and innovation officer of nowly and Teachers Life. “It’s part of our purpose, and I believe all insurance companies have a responsibility to support policyholders in living healthy lives, both physically and mentally.”
Different insurance providers have reported an influx of mental health claims in recent years, indicating Canadians are taking steps to improve their mental health.
GreenShield highlighted a 132% surge in mental health claims and a 14% uptick in chronic disease-related drug claims among Canadian workers since COVID-19.
Sun Life reported that between 2019 and 2022, the number of members making mental health practitioner claims under their group benefits plan increased by nearly 70%, with claims volume also seeing sustained growth in 2023.
Meanwhile, a mental health index by healthcare provider TELUS revealed high mental health risk for one in three Canadian workers under the age of 40.
Osborne told Insurance Business that the rise in mental health claims has been evident across many sectors of insurance. "Mental health claims have increased dramatically across all industries, whether you're an educator, health practitioner, or in any other profession,” she said.
“While COVID certainly contributed to this rise, there are other factors affecting youth specifically. Pressures like housing affordability and climate grief are weighing heavily on them and may be impacting their sense of optimism for the future. We’ve heard directly from young people about these societal and economic pressures."
As a fraternal insurer, Teachers Life Insurance is invested in giving back to its communities, which are education workers and teachers.
Last week, Teachers Life and nowly announced nine new grant recipients for their annual innovation accelerator, Press Start CoLab. The program has granted a total of $77,000 in seed funding to nine innovative mental health projects developed by young Canadians.
Over 10 weeks, 50 aspiring “social-preneurs” and activists aged 18 to 29 worked with industry and impact experts, receiving mentorship to develop forward-thinking solutions that tackle key mental health issues.
“After speaking with youth leaders across the country, we identified three key areas (of concern): the mental health crisis, climate grief, and the impact of misinformation, particularly on mental health,” Osborne said.
This year’s cohort of diverse recipients is developing projects ranging from holistic mental health programs for young entrepreneurs to community support for women with ADHD and networks for Indigenous peoples centering cultural sensitivity and traditional medicine practices.
Osborne explained that the Press Start program, which is in its third year, was born out of conversations with Teachers Life’s members. “When we asked what we should focus on in our social give-back programming, they told us the most pressing issue is the mental health crisis,” she said.
However, the initiative is not just about providing funds but fostering mentorship and networks for the next generation of Canadians to become successful change-makers.
“It’s about building relationships, providing access to mentors and tools, and helping them grow into the next generation of leaders,” said Osborne. “Empowerment, not just financial support, is the key.”
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