Digital mental health

In addition to its impact on physical health, COVID-19 has had a devastating effect on mental health. Erin Crump, Vice President of Business Initiatives, explores the implications for the insurance industry – and the opportunities presented by digital tools.

Digital mental health

Erin Crump, Vice President, Business Initiatives

Even before COVID-19 hit, there had been talk for several years of a growing mental health crisis. In the U.S., for example, it’s estimated that one in four adults suffers from a diagnosable mental disorder in any given year. This has huge implications for healthcare systems and economies. According to the OECD, the economic burden of mental ill-health can rise to more than 4% of GDP (source). On the positive side, recent years have begun to see a major reduction in stigma around mental health, thanks to improved education, understanding, and awareness. COVID-19 only accelerated and exacerbated these underlying trends. Throughout the pandemic, we have seen an increase in the prevalence of anxiety and depression, isolation and bereavement, job loss and financial stress, as well as increased alcohol and other substance use disorders.

Mental health as an emerging risk The implications for the insurance industry cannot be ignored. The Emerging Risk Initiative working group of The CRO Forum released its Emerging Risk Radar update at the end of 2021, with mental health one of three added emerging risks due to the shift in claims from somatic to mental illnesses. Mental health issues have implications for our industry throughout the customer journey: Like all health challenges, mental health can be complicated. At the pricing and underwriting stage, how insurers ask questions is important; so are assumptions based on disclosures. Among many other factors, links between mental illness and substance use disorders and the differing impacts of mental illness on men and women, are critical to consider. When it comes to claims and health management, mental illness is fast becoming a leading cause of disability, resulting in longer and more complex claims. There is a link between mental challenges and the risk of long-term medical conditions. Mental illness can also impact an individual's capacity to activate behavior change that would have a positive impact on medical outcomes (such as quitting smoking or losing weight).

“More than ever, digital mental health is helping to close the treatment gap”

“There has been an explosion in digital mental health platforms in recent years”

Closing the treatment gap Importantly, there are clear opportunities for our industry to improve mental health outcomes and drive ongoing customer engagement. Digital mental health is a huge growth area that is helping to close the treatment gap, improve access to services, and lower costs of treatment to improve the customer journey. There has been an explosion in digital mental health platforms in recent years, many with clinically validated results – for example Silvercloud, Ginger.io, OPTT, and HelloBetter. There has been demonstrated success using internet-delivered cognitive therapy to accelerate return to work.

In addition to the direct support offered by these tools, the data gathered can help to ensure we’re in a position to better understand and anticipate customer health needs into the future. The trends we are seeing in mental health are alarming, and unfortunately the majority of people who need support still don’t receive it. However, the area of digital mental health support is extremely promising, and I am optimistic that it can help close the treatment gap – creating an important service that we can offer our customers. To dive into this topic even further and hear about some examples of successful digital tools, watch my full presentation »

The economic burden of mental ill-health can rise to more than 4% of GDP

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