A new report highlights the importance of mental health and connection to the natural world for improving health outcomes. Candice Smith, Head of Wellbeing for AIA Australia speaks to Miriam Fine about how the findings support a holistic approach to future wealth and wellbeing.

It’s been more than two years since the world at large started to experience the most acute health crisis of our century so far. In the context of a global pandemic, long-term health risks that have been escalating for decades can slip down the broader health and wellbeing agenda. On the other hand, the circumstances of the pandemic –  with its lockdowns and extended periods of isolation –  have brought mental health to the fore as a public health priority.

In compiling their 2022 report on behaviours that lead to poor health outcomes and the conditions behind the majority of health problems and deaths, AIA Australia has made important changes to its framework for presenting research findings. Acknowledging the significant role mental health conditions now play in preventing Australians from living a healthy life, the non-communicable diseases (NCDs) tally in the report has risen from four to five. Joining cancer, diabetes, respiratory and heart diseases, mental health conditions and disorders are now the fifth NCD known to contribute to more than 90% of deaths in Australia.

The evolution of health risks

As Candice Smith, Head of Wellbeing for AIA Australia points out, this shift in the conditions causing the greatest impact on health and quality of life has been occurring for some time. “The AIA Vitality program and the research it’s based on have evolved over the last 15 years,” she says. “In that time we’ve been careful to pay close attention to changes in the health and wellbeing landscape, including the advances in the science investigating what supports our health and puts us at risk.

“Our original 4490 framework introduced in 2017 focussed on the four most impactful behaviours likely to result in the four NCDs that cause 90% of deaths in Australians,” she adds. “This enabled us to focus on designing programs for our customers to support behaviour change that can really make a difference to their health and mortality outcomes.”

When the United Nations broadened their focus in addressing NCDs and associated risk factors, it made sense for AIA’s own framework to expand as they examined the health of Australians in a new light. “The UNs own five by five approach was introduced in 2018,” she says. “We were already doing the work at AIA to focus on mental health as a contributor to death and disability outcomes. It’s important to remember that mortality isn’t the only negative impact from a health condition, including mental illness. Years of healthy life can be lost to mental health issues due to disability or premature death.”

The new AIA 5590+ report bears this out, highlighting some alarming figures pointing to the growing burden of mental illness. According to the report more than 300 million people or 4.4 per cent of the world’s population suffer from depression and this is the leading cause of disability worldwide. By 2030, mental disorders are expected to be the number one contributor to our global disease burden.

A holistic perspective on health  

The UN five by five approach also takes into account a fifth behavioural factor putting our global population at greater risk of experiencing one or more of the five NCDs. Interactions with the environment are now part of a more holistic view on the determinants of wellbeing and this is reflected in both the 5590+ report and a more in-depth study AIA has now published to present the evidence and scientific literature linking human health and the environment.

“The connection between the many aspects of our lives that can determine our wellbeing is something that’s being spoken about more and more in the last decade,” says Candice. “In the two years since COVID hit, we’ve had an even greater reason to explore the holistic context of wellbeing and shift to a less siloed approach. In that time our communities have been tested, not just by the pandemic but by major weather events. It has shown very clearly how our environmental interactions and the consequences of these are just as critical in considering how we protect wellbeing in our society.

“In our new report The Environment and our Health we’ve brought together key findings from scientists to show that climate change is the greatest global health threat we’re facing in the 21^st century. Not only are lives at risk from extreme events as we saw in the 2019/20 bushfires and the NSW and Queensland floods in 2022, there are profound impacts on air and water quality and temperatures that can result in health risks ranging from respiratory illness to food shortages. Plus there is the mental toll of climate change as people experience direct disruption from extreme weather events and anxiety escalates about the future stability of our society and environment.”

As a company committed to helping its customers, and all Australians, lead healthier,

longer, better lives, these insights are critical in helping AIA prioritise the environment within their activities and programs. But it’s not only organisations like AIA who are now bringing a more holistic, connected approach to creating value for their stakeholders.

“There’s a recognition now across all industries that a focus on wellbeing across the board – for environment and society, employees and customers – is in the interests of all stakeholders,” says Candice. “Sustainability in our business is a strategy that goes upstream to address how business objectives can be met. Insurance used to be about protecting people from something bad happening. But we’ve made it about investing in education and promotion that can help our customers to invest in their health and be rewarded with program incentives, as well as better health outcomes.

“It’s a win win, because we’ve achieved business objective and our customers are healthier which means they’re better off, while society gains too. It demonstrates that you can easily solve a societal problem profitably if you shift the focus to one of wellbeing.”

Informed and proactive solutions

Having confirmed the evidence that mental health is a major and growing contributor to poor health outcomes, AIA has been working to expand its AIA Vitality program to include mental health activities and benefits. “The AIA Vitality program is all about getting people in the know about what can have an impact on their health and giving them evidence-based ways to introduce new behaviours that will deliver improvements,’ says Candice. “For the last two years we’ve been developing a validated assessment we can deliver to our customers to help them explore their mental wellbeing, determine their risk category and match them with suitable interventions.”

The activities customers can engage with fall into five categories: physical health, sleep, mindfulness, cognitive behavioural therapy and social connectedness. “These interventions are all offered on the basis of evidence that’s shown them to be  effective,” says Candice.“The new program brings together technology, tools and partner services to deliver a holistic mental health program across all five categories that customers can tailor to match their risk assessment outcomes. We’re on track to launch the program to existing AIA members  in the next 12 months.”

The value of peace of mind

In a report that’s currently a work in progress, AIA will be further investigating a known risk for mental health disorders – financial stress. In the ANZ/Roy Morgan financial wellbeing survey results published in December 2021, 68% of people struggling with money problems reported experiencing mental health issues. This drops to just 8% for people who have no concerns about their finances^[1].

While the survey shows socio-economic conditions have the largest impact on financial wellbeing, two of the four components of their financial wellbeing scoring are how comfortable respondents feel in their current financial position and how secure they feel about their financial future. In Candice’s view this supports the case for financial advice as a critical contributor to financial wellbeing.

“In the work we’ve been doing recently exploring the literature on links between financial and mental wellbeing, a clear finding has emerged that people’s perception of their financial situation and their feelings about it have a significant influence on their mental health,” she says. “It’s very important to acknowledge the peace of mind people get from engaging a professional to help them feel safe in their finances.

“We know the peace of mind insurance brings to our customers, or others who take out cover and we shouldn’t underestimate the impact that can have on mental wellbeing. As a component of a holistic financial plan, taking that step to protect your family or yourself is just one of the ways financial advice can deliver that sense of security about what the future holds.”

The cascade effect

When financial advice is seen by a client as a ‘healthy behaviour’ this can also have a knock-on effect on other behaviours that can lead to better health. So it can be important for financial planners to frame their service as part of the foundation for their clients’ overall wellbeing. “When people are thriving in their financial wellbeing they’re more likely to engage in other behaviours that are positive for their health,” she says. “It’s been our experience with the AIA Vitality program that once people have change one behaviour for the benefit of their health, they’re motivated to take further action.

“This is an insight that can help financial planners see the advice process as a powerful tool for health and wellbeing. It’s far more than a task or an administrative box to tick. It has the power to improve the mental health of current and future advice clients.”

Another way in which financial advice can indirectly support better mental and physical health outcomes for clients is in presenting them with investing options that can interrupt the negative cycle of environmental harm and it’s effects on human health and wellbeing. “Investing in sustainable assets can be a positive way for advice clients to take control of the impact they’re having on their environment,” says Candice. “This can enhance their peace of mind that they’re taking responsibility for a more stable future for our planet, which is in their interests as well as protecting the environment their future generations will be living in.”

Advice in a complex world

Concerns about the state of our planet and climate are just one of potential cause of anxiety Australians have had to live with in the last two years. After emerging from recurring lockdowns later in 2021, many people are managing to return to life as they knew it before the pandemic began in early 2020. But others will continue to struggle with mental health issues caused, or heightened, by the long periods of isolation and uncertainty.

“There is a lot of talk about the shadow pandemic – the lasting impact of COVID on mental health,” says Candice. “It’s likely that the full force of this hasn’t fully landed yet and I expect we’ll be seeing more and more people needing support with mental health disorders, esepcially young people. They recognise that no-one saw COVID coming and that we weren’t prepared and that’s frightening because it introduces a sense of uncertainty they may never have experienced before.

“This highlights how important it is to have these conversations about the value in having a plan that can help you feel better equipped for the unexpected. And financial advice can be a significant component of that plan. That’s why financial planners have a significant role to play in helping people feel prepared for the life’s curve balls, major and minor.”

Another reason Candice expects financial advice to become more valued in the future is how complex the world is becoming. As experts in all things financial, planners can help clients navigate the many choices and options they have to choose from, giving them peace of mind that they’re making sound decisions for a secure future.

“The way we’ve always seen it in the AIA Vitality program is that everything to do with your health is interlinked,” says Candice. “From nutrition to physical activity to mental health, it’s all important. And we know people need to lean on professionals in allied healthcare to make sure they’re making the best choices for how they eat and exercise and the treatments they’re getting. Seeing a financial planner is up there with seeing an exercise physiologist who can tailor your training and fitness activities to suit your age, physical condition and goals. You don’t have to do it all by yourself, you can get help from an expert to guide you through it and choose the right options for your situation.”

Footnote

[1] ANZ/Roy Morgan, Financial Wellbeing: A survey of adults in Australia, December 2021