Migration and TPD: Navigating the New Workforce Reality

Migrants and their occupations

The types of roles migrants undertake in Australia vary considerably, influenced by factors such as visa category, skill level, language proficiency, and the recognition of overseas qualifications. These elements not only determine the positions migrants can secure but also shape their suitability for specific roles and their long-term integration into the Australian labour market. Migrants are strongly represented in professional occupations, accounting for up to 21% of the workforce. This is largely driven by skilled visa pathways, which align with roles in engineering, information technology, healthcare, and accounting. In addition, migrants make a meaningful contribution to the community services sector, comprising 17% of the workforce in areas such as social work, youth services, and disability care. Conversely, despite persistent labour shortages in industrial sectors – including construction, manufacturing, and utilities – migrants remain under-represented in these fields. A key barrier appears to be the requirement for Australian certifications or training prior to employment in these roles, which can limit entry into these industries.

Understanding the types of roles migrants undertake is critical when evaluating their education, training, and/ or experience (ETE) in the context of TPD assessments. The diversity of occupations – from highly skilled professional roles to community services – highlights the varied qualifications and transferable skills migrants bring to Australia. When truly assessing an individual’s ETE it is also important to consider how that individual has secured work in Australia – has it been through word of mouth via their friendship network; and the languages they speak at work – for example are they working in an environment where they speak their native language and rarely communicate in English.

With an individual’s skills and experiences often originating overseas, it raises questions about their relevance and recognition within the local labour market. This complexity underscores why insurers must carefully consider how prior roles and qualifications shape a migrant’s suitability for alternative employment options post-disability.

Navigating uncertainty: What can claims teams rely on?

The absence of clear legal precedent around overseas qualifications and the recency of experience can make TPD assessments challenging. So, what guiding principles can claims and rehabilitation teams depend on to ensure fair and consistent decision-making?

1. The Life Insurance Code of Practice This industry-wide commitment sets mandatory standards for service, transparency, fairness, and honesty. It ensures that life insurers act reasonably and ethically when assessing claims, providing a strong foundation for decision-making.
2. Insurance Contracts Act (ICA) Under the ICA, insurers are bound by the principle of utmost good faith. This goes beyond avoiding dishonesty – it requires insurers to act with integrity, fairness, and in the best interests of the insured throughout the claims process.
3. Relevant Case Law While there is no specific case law addressing overseas qualifications or recency of experience, existing decisions offer valuable guidance. For example, Jones v Hannover Re reinforces that an individual’s transferable skills must have “prepared and shaped” them to be reasonably fitted for any alternative occupations proposed by an insurer’s independent expert. This principle can help assess whether suggested roles are appropriate.

A recent example of a case referred to Benchmark highlights the challenges and varied approaches and opinions when assessing cases of this nature. The case details are as follows: the insured was a 31-year-old form worker who ceased work in 2023 due to a neck issue and was precluded from working in heavy manual roles. The insured moved to Australia in 2018 and had only ever worked as a form worker since that point. However, prior to migrating the insured held various roles in their own country, including farm hand, retail roles (in grocery stores and at markets), taxi driver, and security officer. There was internal discussion at Benchmark about the suitability of the overseas roles in the Australian labour market and whether they were appropriate options based off the insured’s ETE. The differing opinions highlights the lack of clear guidance and precedent when assessing such cases which can add to the complexities of a TPD assessment.