Rehabilitation focus produces better results, Swiss Re report finds 

Investing in rehabilitation services leads to better outcomes for life insurers and their customers, a Swiss Re report has found. 

Insurers saved $55.91 on claims costs for every $1 spent on in-house rehabilitation and $32.38 for every $1 spent on external rehabilitation services, according to the report. 

And almost half the customers who receive either in-house or external rehabilitation support successfully return to work. 

“There are clear benefits of rehabilitation, to the customer, the insurer, and the wider community through workforce participation,” Swiss Re says. 

The report, Rehabilitation Watch 2022, covers the benefits, costs, and trends of rehabilitation services across the Australian life industry and is based on data submitted by eight participating life insurers for the 2021 calendar year. 

Swiss Re, which last produced the report six years ago, says previous editions saw the growth of rehabilitation consultants working in the industry and last year all insurers have dedicated in-house rehabilitation teams aligned to claims functions. 

While the number of rehabilitation professionals has remained consistent since 2016, operating models have become more targeted in supporting policyholders. 

“The industry is focused on intervening early,” the report says. “Providers servicing the industry have innovated programs to improve customer function and wellbeing, with more tailoring of condition-specific programs aligned to the leading causes of claim.” 

Insurers are also offering preventative programs to policyholders, funding rehabilitation services in the waiting period, screening new claims and collaborating with employers on absence management initiatives. 

Five of the life insurers who took part in this report now offer preventative rehabilitation services to policyholders. 

Looking ahead the report says all participants agree that rehabilitation services will play an even greater role in life insurance claims over coming years. 

Technology will become more significant such as increased usage of wearables and application of artificial intelligence to personalise rehabilitation offerings. 

“Early intervention will be truly early,” the report says. “Participants unanimously agreed there is opportunity to forge stronger relationships with employers and key stakeholders to offer rehabilitation interventions at the earliest possible opportunity following injury/illness.”