Cyber Insurance Online :: News
SHARE

Share this news item!

Rising Mental Health Claims Signal Urgent Need for Tailored Workplace Solutions

Rising Mental Health Claims Signal Urgent Need for Tailored Workplace Solutions

Rising Mental Health Claims Signal Urgent Need for Tailored Workplace Solutions?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In recent years, there has been a notable increase in mental health claims among employees grappling with heightened economic pressures and workplace challenges.
Allianz, the country's largest workers’ compensation insurer, highlights a pressing issue: a 47.5% surge in active psychological claims, accompanied by a 30% hike in absence days due to mental health concerns from 2019 to 2022.

The insurer serves over 155,000 businesses, indicating a significant cross-section of the national workforce. Predominant causes of these psychological claims include workplace harassment, bullying, and stress/burnout, collectively constituting 76-78% of all such claims.

In a survey Allianz conducted between April and May this year, nearly half of the respondents reported feeling fatigued in their roles. Additionally, over one-third of employees are contemplating changing jobs within the next year. This widespread fatigue, coupled with discontentment over compensation and workload, is contributing to mental health strain.

Specifically, 46% of employees cite economic stressors as a major detractor from job satisfaction, while 33% feel their compensation does not match their efforts. Another 25% attribute their mental exhaustion to increased work demands. Allianz emphasizes, "Economic pressures are directly impacting employees' views on their work environment."

Julie Mitchell, Allianz's Chief GM for personal injury, points out that primary psychological claims are not only growing in number but also in cost. Over the past five years, the average cost of a psychological claim has been 2.8 times higher than that of a physical claim. In 2023 alone, the average expenditure for a psychological claim stood at $42,335, up from $32,769 in 2019, as reported to insuranceNEWS.com.au.

Despite the reduction in mental health stigma, Mitchell warns of an ongoing rise in the frequency and complexity of these claims unless organizations proactively address their employees' needs. She asserts, "It's crucial for companies to move away from a 'one size fits all' mental health strategy, as employees’ experiences and needs vary greatly based on individual circumstances."

Employees have voiced a desire for more transparent communication about workplace issues and want management to establish clear channels for airing concerns. This sentiment reflects a need for customized approaches to mental health support that recognize and address the unique challenges faced by different workforce segments.

This article is based on information originally reported by insuranceNEWS.com.au.

Published:Monday, 17th Jun 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

Sign in with Google to rate

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

What the New NSW Disclosure Rules Mean for Strata Cover
What the New NSW Disclosure Rules Mean for Strata Cover
09 Sep 2026: Paige Estritori
The latest phase of New South Wales strata reform has brought strata insurance disclosure back into practical focus, moving the issue from policy debate to renewal-season reality for owners corporations. The changes are designed to make it clearer when a strata managing agent, broker, insurer or related party receives a commission, fee or other financial benefit connected with arranging insurance. - read more
What a Steadier Life Insurance Market Means for Employers
What a Steadier Life Insurance Market Means for Employers
09 Sep 2026: Paige Estritori
Fresh life insurance performance data from APRA points to a market that is steadier than the disrupted conditions seen in recent years, but not one where employers can afford to be passive. For CFOs, HR leaders and directors, the message is less about a single quarterly result and more about the operating environment behind corporate life insurance pricing, claims service and product design. - read more
Why NSW Levy Reform Matters for Trade Businesses
Why NSW Levy Reform Matters for Trade Businesses
09 Sep 2026: Paige Estritori
A fresh push to reform how NSW funds emergency services has put insurance affordability back in the spotlight, especially for small businesses that already feel every increase at renewal time. The issue centres on the Emergency Services Levy, which is applied through many insurance policies and has long been criticised by parts of the insurance sector as a disincentive to maintaining adequate cover. - read more
New APRA rules put insurer systems under the spotlight
New APRA rules put insurer systems under the spotlight
09 Sep 2026: Paige Estritori
Australia’s tougher operational risk regime is sharpening the focus on how life insurers manage the systems, partners and processes that sit behind every policy. APRA’s CPS 230 standard requires regulated insurers to identify critical operations, set clear disruption tolerances and strengthen oversight of material service providers. For customers, this is not just a back-office compliance story. - read more
Why Claims Handling Scrutiny Matters for Business Owners
Why Claims Handling Scrutiny Matters for Business Owners
09 Sep 2026: Paige Estritori
Fresh compliance attention on life insurance claims handling is a timely reminder that cover is only valuable if it can respond clearly and efficiently when a business is under pressure. Recent industry monitoring has again highlighted familiar issues for life insurers, including claim delays, communication gaps, repeated evidence requests and the need for more consistent support where customers are vulnerable or dealing with complex medical events. - read more
Click for more Insurance News


Cyber Insurance Articles

Cyber Security Essentials: Steps to Secure Your Online Business in Australia
Cyber Security Essentials: Steps to Secure Your Online Business in Australia
As the digital economy flourishes, Australian businesses are enjoying the fruits of their own cyber-infrastructure but are also becoming increasingly susceptible to cyber threats. The era of the internet has ushered in a wave of new opportunities, yet it also demands vigilance in the face of growing cyber risks. With cyberattacks becoming more sophisticated and frequent, the imperative for robust cyber security measures has never been more pronounced. - read more
Protect Your Data: Cyber Security Measures Every Aussie Company Must Implement
Protect Your Data: Cyber Security Measures Every Aussie Company Must Implement
In today’s digital landscape, Australian companies face an increasing threat from cyber criminals. The paramount importance of cybersecurity has never been more evident, with the surge of incidents exposing the vulnerabilities in organizations' digital defenses. As we usher into an era where data breaches and cyber attacks are commonplace, protecting digital assets becomes a crucial part of doing business. - read more
Cyber Insurance 101: What Every Australian Business Owner Needs to Know
Cyber Insurance 101: What Every Australian Business Owner Needs to Know
Cyber insurance, also known as cyber liability insurance, is a type of coverage designed to protect businesses from the financial repercussions of cyber attacks and data breaches. As cyber threats become more sophisticated, the need for a safety net to mitigate the impact of such incidents has grown significantly. - read more
How to Protect Your Small Business from Cyber Threats
How to Protect Your Small Business from Cyber Threats
In today's digital age, the rising importance of cybersecurity for small businesses in Australia cannot be overstated. As technology permeates every aspect of business operations, it offers tremendous advantages but also exposes small businesses to a growing array of cyber threats. These threats are increasingly targeting small companies, seeking to exploit vulnerabilities and potentially cause significant financial and reputational damage. - read more
Cyber Insurance Claims: What Small Business Owners Need to Know
Cyber Insurance Claims: What Small Business Owners Need to Know
Cybersecurity incidents are a growing concern for small businesses. These incidents can have disastrous consequences on the affected businesses and their customers. Cyber insurance policies provide a form of financial protection for small businesses in the event of a cyber-attack. This article will provide an overview of cyber insurance claims and its importance for small business owners. - read more

Knowledgebase
Term Life Insurance:
A life insurance that provides a cover for a specific period of time - usually one to five years or until the insured reaches age 65 or 70.

Quick Links: | Cyber Insurance | Business Cyber Insurance | Cyber Liability Insurance | Small Business Cyber Insurance | Cyber Risk Insurance | Commercial Cyber Insurance | Cyber Security Insurance | Data Breach Insurance | Cyber Attack Insurance | Cyber Insurance Coverage | Cyber Insurance Policy
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.