Disability law practitioners need to understand how the COVID pandemic has changed the overall health of Canadians, which in turn has affected the types of long-term disability (LTD) insurance claims you can expect to be handling.Since the appearance of COVID-19, through lockdowns and into the return to “normal” life, the types and volumes of disability claims have changed significantly. Mental disorders lead claims overall, but new trends and impacts have emerged that vary by age, gender, and industry. Claims for chronic disease could also increase due to people delaying screenings and treatment during the pandemic.Sun Life, one of Canada’s largest life and health insurers, recently released a detailed report of the patterns in health insurance claims in the past couple of years. Their “Designed for Health” report is based on disability claims across Sun Life’s health plan member base, which covers millions of Canadians.

Mental disorders are the leading driver of disability claims.

They also account for an increasing share of all claims, and this trend is likely to continue. Mental Health Research Canada found that about one-third of Canadians have had a mental disorder diagnosis. A Ceridian HCM Poll in July 2022 found that one-third of Canadian employees reported severe burnout symptoms. Diagnoses of depression or anxiety increased 30% during the pandemic. In total, 16% of all of Sun Life’s drug claims in 2021 were for mental disorders. These claims are markedly higher among key demographics:

  • For women, over 40% of claims are for mental disorders. (For men, this is around 30%.)
  • Over half of disability claims among those under 45 years old are for mental disorders.
  • Over half of claims by employees in the Financial sector (including real estate) were for mental issues.
  • The Services sector (including frontline health jobs) showed a rise in the months following the initial wave of the pandemic, followed by another rise in the wake of the Omicron variant in late 2021.
  • As employee numbers increase, so does the proportion of mental disorder claims. Among the smallest employers (50 or fewer employees) about 30% of claims are for mental disorders; this rises to about 40% among the largest employers (1000+ employees).

 

Musculoskeletal (MSK) disabilities expected to increase.

Long-term MSK disability claims decreased during the pandemic, but this is expected to be temporary, for many reasons.Many people worked from home and cut back other activities during the pandemic. Their MSK issues may have subsided or might have been better managed at home, and the potential for injury was likely lower for many employees working at home. As many people go back to work and pre-pandemic pastimes, MSK claims are likely to rise. The poor ergonomics of many home workspaces may take time to emerge in LTD claims. Delayed therapy due to the pandemic could mean serious conditions and prolonged recovery in future.Finally, an aging workforce means MSK conditions will continue to grow. MSK claims make up approximately one-quarter of all claims for those over 55 years of age, and are most prominent among employees in the Manufacturing and Mining sectors.

Cancer-related claims expected to increase.

These began trending downward pre-pandemic. In recent years, new cancer treatments led Health Canada’s specialty drug approvals, and many new cancer therapies have shown to be highly effective with fewer side effects, which bodes well for the future impact of cancer diagnoses on quality of life, staying healthy and being able to work.But the pandemic caused many Canadians to miss routine cancer screenings. The first pandemic wave alone resulted in a 40% decrease in screenings for breast and colorectal cancers. Missed screenings mean fewer early diagnoses and treatment, which may result in fewer disability claims. Fewer people started therapies that could require extended time off work; chemotherapy, for example, often requires absences due to long-term treatments and strong side-effects. But with fewer cancers detected early, leading health organizations warn that more Canadians might receive later-stage diagnoses, which could in turn result in a future increase in long-term cancer disability claims.

Circulatory claims expected to increase.

The volume of circulatory claims (e.g., stroke, heart disease) has stayed level since the pandemic. But as with other issues, many Canadians missed screenings and treatment for these conditions during the pandemic, which could result in more serious illness later. While therapies for circulatory conditions usually do not cause prolonged work absence, the potential for longer-term impact remains, so anticipate an increase in LTD claims here.Also, inactivity and poor lifestyle habits Canadians adopted during the pandemic could drive higher incidences of several chronic diseases. For those with existing conditions, challenges in sticking to treatments and healthy lifestyles during the pandemic could also have a longer-term impact on the progression of and severity of their illnesses.You can find the full report here