Mental health
Mental disorders are a widespread and pervasive problem with a profound impact on the whole world, affecting a significant proportion of the population. According to the World Health Organization (WHO), approximately 1 in 8 people globally live with a mental disorder.
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Anxiety and depressive disorders are among the most prevalent, affecting an estimated 300 million and 280 million people, respectively.
These numbers rose significantly as a result of the Covid-19 pandemic, which was a significant catalyst for mental health issues. The causes were manifold. These included phases of prolonged isolation, the unknown end of the pandemic, the question of when a return to normal life would be possible, but also increasing financial and social problems due to the economic crisis created by the pandemic restrictions. These specific pandemic effects occurred at a time that was already marked by a global increase in mental health problems.
Mental health issues can affect individuals at any age, but certain disorders are more prevalent in specific age groups. For instance, the onset of many anxiety disorders often occurs during childhood or adolescence. Around 8% of the world’s children (aged 5-9) and 14% of the world’s adolescents (aged 10-19) live with a mental disorder. Furthermore, depressive disorders often manifest during adolescence or early adulthood, with peak incidence occurring in individuals aged 20-29. Around 14% of adults aged 60 and over live with a mental disorder. The most common mental health conditions for older adults are depression and anxiety. Worldwide, about a quarter of deaths by suicide occur in people over 60. Mental health conditions in older people often go unrecognised and undertreated, and the stigma surrounding these conditions can make people reluctant to seek help.
Socio-economic factors heavily influence mental health. People living in poverty, unemployed individuals, and those with low educational attainment are at higher risk of developing mental disorders. Additionally, marginalised communities often face higher levels of mental health issues due to stigma, discrimination, and social exclusion. The prevalence of mental disorders varies by region due to cultural, economic, and social differences. In absolute numbers, the majority (82%) of people with mental disorders live in low- and medium-income countries. Through as a percentage of population, mental disorders are somewhat more common in high-income countries (15.1%). Furthermore, there are regional differences as to the type of mental disorder. For example, depression is more prevalent in high-income countries, whereas anxiety disorders are more common in regions experiencing conflict and displacement. The WHO reports that the highest rates of depression are found in North America, Western Europe, and Australia, while anxiety disorders are more prevalent in the Eastern Mediterranean and South-East Asia regions. The economic impact of mental disorders is profound. It is estimated that mental health conditions cost the global economy around USD 1 trillion annually in lost productivity. This financial burden is due to absenteeism, reduced productivity at work, and increased healthcare costs. Depression alone accounts for a significant portion of this economic loss, being one of the leading causes of disability worldwide.
Mental health can have a significant impact on life and health insurance as well as property and casualty insurance. Mental health disorders are major contributors to occupational impairment, absence, and disability. They substantially impact occupational disability insurance, which typically provides financial support if injury or disease prevent people from working. The WHO assumes that depression is the second leading cause of disability in the developed world. Common mental disorders, like depression or burnout, are among the most frequent reasons for long-term absence from work. As mental health issues become more pervasive, employees are increasingly likely to initiate legal action against their employers, alleging failure to implement adequate preventive measures to address concerns like burnout, stress, and other mental health challenges. The anticipated surge in claims under various insurance policies, including employer’s liability, workers’ compensation, and accident and health insurance, is likely to strain both employers and insurers alike. Furthermore, the surge in mental health conditions has direct implications for professional liability insurance (PI), and errors & omissions (E&O) insurance, particularly within the healthcare sector where individuals and entities providing professional services, such as medical doctors and nurses, are covered. Evolving trends in mental health are increasing the risk under such policies, leaving healthcare professionals increasingly liable for errors or omissions resulting from mental fatigue, burnout or other related factors.