A piece in the Financial Post last month provides a glimpse of the impact the ongoing coronavirus pandemic has on disability insurance (Rolfe, K., 17-Aug-2021, ‘A pandemic after the pandemic’: Insurers brace for disability claims ‘deluge’ from mental, physical strain of crisis). In short, disability claims are not only more numerous, they are also prolonged.
Yes, insurers are seeing coronavirus-related claims, including for Long COVID. But to add, the strain placed on hospitals by the pandemic has resulted in delayed access to non-urgent medical treatments for thousands of people off work for disability. This translates to prolonged disability.
And that’s just for non-mental health claims. Claims for mental health supports increased 24% last year, and Sun Life Canada reports that over 30% of its disability claims are for mental health conditions and represent 45% of disability claims costs. What’s more, numerous people disability for non-mental health conditions have been experiencing levels of anxiety and depression, that are prolonging their disability, and thus their return to work.
And let’s not forget that group disability insurance is not the only space affected in this way: These same factors can affect the experience of people having disability claims with workers’ compensation, motor vehicle injuries, CPP disability, Veterans, and disabled persons accessing disability support programs.
Is COVID-19 impacting anyone you know with a disability claim? And in what ways?
What do you think?
