AIA Australia reveals stark gender divide in IP claims

New analysis from AIA Australia finds a stark difference among group insurance income protection claims when it comes to gender, with women leading mental illness and musculoskeletal-related claims.

AIA's group claims experience for 2025 showed distinct gender differences in claim causes under income protection, as accidents were the most prominent among male claimants.

Women's claims, on the other hand, were more concentrated in health-related conditions, with mental illness and musculoskeletal conditions leading overall.

Women, who were 49 years old on average, dominated income protection claims at 62%.

AIA found women experience a significant impact from mental health and physical health conditions during their peak employment years.

"This highlights the importance of early mental health support, inclusive workplace practices and sustainable return-to-work frameworks," AIA said.

"This reinforces mental illness as the leading cause of disability - particularly for women - highlighting the need for early intervention, workplace support and integrated recovery pathways."

Total income protection claims increased to $555 million in 2025, up from $516 million compared to the prior year.

Total and permanent disability (TPD) continued to be a significant cost driver, with $583 million paid in 2025, compared with $622 million in 2024. While slightly lower year-on-year, AIA stated it remains a material contributor to overall group claims.

Across group TPD claims accepted last year, mental illness and musculoskeletal conditions were the leading drivers for both genders.

For this category, men's claims were more evenly distributed - led by mental illness, musculoskeletal conditions, and accidents - and tend to occur younger, typically in mid- to late-40s.

Female claims were more concentrated, with mental illness and musculoskeletal conditions accounting for over half of all female TPD claims, typically occurring between the ages of 45 and 49.

AIA Australia chief executive and managing director Damien Mu recently told Financial Standard a top priority for the sector is to nut out how TPD and income protection can be redesigned around recovery and return-to-work pathways.

"For income protection, there should continue to be a strong focus on providing support early, before a claim becomes prolonged. Building stronger engagement with employers, access to rehabilitation support, partial capacity benefits and structured return-to-work payments can all play an important role in helping members rebuild capacity and return to suitable work over time," he said.