Rising Mental Health Claims Signal Urgent Need for Tailored Workplace Solutions
Rising Mental Health Claims Signal Urgent Need for Tailored Workplace Solutions
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.
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.
The latest review of the Life Insurance Code of Practice has put mental health cover at the centre of the national conversation about life insurance, disability insurance and income protection. Independent reviewer Peter Kell has completed his final report, outlining 85 recommendations aimed at improving customer protections, claims handling, communication, vulnerability support and the enforceability of the Code. - read more
APRA’s latest update to the general insurance reinsurance framework may sound like a back-office regulatory change, but it has practical relevance for Australian boat owners watching premiums, excesses and renewal conditions. Published on 7 July 2026, the reforms are designed to give general insurers better access to alternative reinsurance arrangements while keeping safeguards in place for policyholders. - read more
New analysis released by the Insurance Council of Australia has put renewed attention on a major cost pressure for NSW businesses: the emergency services levy, commonly known as the ESL. The levy is currently collected through insurance premiums, meaning businesses that choose to insure their assets can face a higher cost for doing so. - read more
New modelling released on 7 July 2026 has added momentum to the debate over how New South Wales funds emergency services, with analysis suggesting that removing the Emergency Services Levy from insurance premiums could deliver meaningful savings for many households and businesses. The findings, commissioned by the Insurance Council of Australia and prepared by Lateral Economics, support a shift away from loading the cost onto insurance policies and towards a broader property-based funding model. - read more
A new cybercrime update has put a timely spotlight on a risk that many beauty businesses still treat as secondary to slips, burns, allergic reactions or damaged equipment. The Australian Institute of Criminology’s latest Cybercrime in Australia report, released on 30 June 2026 and covered by Insurance Business Australia, found that cyber insurance uptake has fallen even as online threats remain widespread. - read more
In today's rapidly evolving cyber landscape, Australian businesses must prioritize data security more than ever before. As companies continue to digitize operations and store sensitive data electronically, the need for robust cybersecurity measures has become paramount. This introduction lays the foundation for understanding the criticality of protecting your company's most valuable asset—its data. - read more
Cyber insurance is a type of insurance designed to protect businesses from internet-based risks and, more generally, from risks relating to information technology infrastructure and activities. It covers losses related to data breaches, cyber extortion, and other kinds of cyber attacks. - read more
Cybersecurity refers to the practice of protecting systems, networks, and programs from digital attacks. These cyber attacks are usually aimed at accessing, changing, or destroying sensitive information, extorting money from users, or interrupting normal business processes. - read more
As we dive deeper into the digital era, the topic of cyber security becomes increasingly critical. With businesses and individuals relying heavily on digital technologies, the threat of cyber attacks looms larger than ever. This introductory section aims to unpack the concept of cyber insurance as a tool to mitigate these risks. - read more
Cyber risk management involves identifying, assessing, and mitigating risks related to digital and online threats. These threats can include unauthorized access to sensitive information, data breaches, and other malicious activities targeting an organization’s digital infrastructure. - read more
Knowledgebase
Beneficiary: The person or entity designated to receive the death benefit from a life insurance policy.
No comments yet. Be the first to share your thoughts.