Less fit and more likely to suffer from chronic illnesses or mental health issues, young Canadians require more care than previous generations at the same age. This new reality brings its share of costs and organizational challenges for group insurers, but there is reason for some optimism.

Teenagers and young adults, forming Generation Z (1997-2012), now represent the age group most affected by mental health problems and chronic illnesses, reveals a Sun Life study published earlier this year that analyzed insurance data from three million plan members across some 20,000 employers.

Analyzing this data, Sun Life found that claims for antidepressant prescriptions grew twice as fast for Generation Z as for other generations over a three-year period. Mental health issues accounted for more than half of disability leave claims among young adults.

Manulife has observed similar trends. “In the last five years, we have seen an increase in disability claims among young workers. For Canadians 18-34 years old, this increase is 19% in long term disability claims. This is quite alarming,” Darren Gilroy, Vice President of Disability and Group Life, stated in an interview with the Insurance Portal.

He added that mental health issues are the cause in the majority of cases. Between 2019 and 2025, the number of long-term disabilities due to mental health issues increased by 52% among 18- to 34-year-olds, while the increase was 30% for the same period among those aged 35 and over, according to Manulife data. Short-term absences among 18- to 34-year-olds also increased by 30% over this five-year period.

A fading taboo

It's not necessarily a matter of concluding that there has been a dramatic increase in psychological distress among the younger generation: the phenomenon may, on the contrary, reflect a fading taboo surrounding mental health issues.

"We have to look at both sides of the same coin," says Marie-Chantal Côté, Senior Vice President, Sun Life Health, in an interview with the Insurance Portal. "We're not happy that there are more needs, but we think the younger generation is using solutions more quickly."

Another study, this time conducted by Mental Health Research Canada and Greenshield and published in November 2025, indicates that uncertainty and financial insecurity, as well as difficulty finding good employment, are significant stressors for young people.

The same research also notes that the level of psychological distress is higher among racialized young adults and members of the LGBTQ2+ community.

“In 2025, adults 25-34 had the 2nd highest number of mental health related claims. They had 10.5% of all our mental health claims submitted that year. The first group are adults ages 35-44,” John Paul Girard, EVP and Head of Insurance for Greenshield, told the Insurance Portal.

More obesity and chronic disease

The report by Sun Life also highlighted that the prevalence of chronic disease is rising among young adults, whose lifestyles are more sedentary. Combined with poor diet, this lifestyle contributes to the increase in obesity rates.

According to Statistics Canada, nearly one in three young adults aged 18 to 39 is now considered obese. “The largest increase was observed among young adults aged 18 to 39, where obesity rose from 22% during the period from 2016 to 2019 to 33% during the period from 2022 to 2024 for males, and from 17% to 29% for females,” the government agency wrote in its report.

At Sun Life, claims for diabetes medications have increased two to four times faster among those aged 30 and under than for other adults.

Data provided by Manulife paints a similar picture: obesity-related claims, across all age groups, have grown by 9% annually since 2021, for an overall increase of 40% over five years. However, claims for obesity medications prescribed to patients aged 24 and under increased by 52% in 2024 compared to 2023. In 2025, these claims also jumped by 40%.

“This tells me that younger adults are adopting these therapies more rapidly than the other age groups. It marks a shift: they are not just seeking help, they understand that it is a chronic condition,” says Gilroy.

Prevention to reduce claims

In its study, Sun Life forecasts that when current Generation Z workers reach middle age, “chronic disease incidence could be significantly greater than today for those aged 40 to 59 and their health could be significantly worse."

But some nuance is needed. The insurers surveyed by the Insurance Portal are optimistic.

“We know that half of Canadians live with at least one chronic disease, 80% of which could be prevented with…habit changes and healthy lifestyle,” emphasizes John Paul Girard of Greenshield.

“All the data shows us that prevention, with dollars invested early, yields a higher return in the long term,” adds Marie-Chantal Côté of Sun Life Health. The report also mentions that, on average, policyholders who use the services of a mental health coach reduce the duration of their short-term disability by five to six weeks. Combined, all the preventative measures offered by insurance plans help prevent half of short-term disabilities from becoming longer, she adds.

In this regard, Sun Life promotes organizational resilience among its employer clients. This involves implementing a series of measures that promote employee well-being, such as providing resources or creating a supportive work environment that helps them better manage their stress.

At Manulife, claims from policyholders who participate in cognitive behavioral therapy are, on average, 17% lower than those of policyholders who do not use this service. “We launched mental health counseling in 2024…. after plan members participate in our programs, we saw a 17% reduction in disability claims,” says Darryl Gilroy.

Technology as a lifeline

The study by Mental Health Research Canada and Greenshield also demonstrates that costs, long wait times, and difficulty finding the right service are the barriers preventing young adults from getting the mental health support they need.

However, John Paul Girard notes that Greenshield’s mobile app, through which policyholders can access several services, is primarily used by 25- to 34-year-olds. “In fact, those 34 and under make up 45% of all users,” he specifies.

Young adults are increasingly using telemedicine services or their online Employee Assistance Program (EAP). “We often talk about connectivity as something harmful, something that makes people sedentary, but it also has advantages,” says Côté. “We can reach people where they are. They can use the services whenever they want, and it’s something that suits them better.”

“Perhaps a 22-year-old man will be more comfortable discussing his symptoms digitally before considering an in-person consultation,” she illustrates.

Online services are also a way to prevent certain problems from worsening, emphasizes Darren Gilroy. The key, he says, is to offer services even before someone goes on disability which particularly resonate with a younger, digitally native cohort. These services include being able to engage with a therapist by phone, and a digital group benefits app which enables them to easily access tools such as nutrition and exercice tips and well-being content, he explains.