Rising Mental Health Claims Signal Urgent Need for Tailored Workplace Solutions
Rising Mental Health Claims Signal Urgent Need for Tailored Workplace Solutions
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
Source: Paige Estritori
Share this news item:
| WFI Insurance and Rural Aid Join Forces to Assist Farmers in Crisis 02 Feb 2026: Paige Estritori In a significant move to bolster support for Australia's agricultural sector, WFI Insurance has announced a formal partnership with Rural Aid, a leading rural relief charity. This collaboration is set to provide much-needed assistance to farmers and rural communities affected by recent natural disasters, including the devastating bushfires in Victoria and severe weather events in Queensland. - read more |
| Elders Insurance Warns Farmers of Escalating Summer Storm Threats 02 Feb 2026: Paige Estritori As the Australian summer approaches, Elders Insurance is calling on farmers to brace for an anticipated increase in storm-related damages. Recent claims data reveals a concerning trend, with summer months accounting for nearly half of all storm-related farm insurance property claims over the past two years. - read more |
| AFCA Observes Significant Increase in General Insurance Complaints 01 Feb 2026: Paige Estritori The Australian Financial Complaints Authority (AFCA) has reported a 17% increase in general insurance complaints for the year ending June 30, 2025, totalling 34,231 cases. This uptick is primarily attributed to issues surrounding add-on covers and delays in motor vehicle insurance claims. - read more |
| APRA's Findings: Stability in PI Claims and Decreasing Premiums 01 Feb 2026: Paige Estritori The Australian Prudential Regulation Authority (APRA) has released its latest National Claims and Policies Database, providing valuable insights into the professional indemnity (PI) insurance sector for the 2022 underwriting year. The data indicates that PI claims payments for non-facility business remained relatively stable at $1.111 billion, a slight increase from $1.109 billion in the previous year. - read more |
| The Importance of Disability Income Protection Programs for Cafe Owners Running a cafe is more than just a business; it’s a passion for many. However, for cafe owners, the risk of an injury or illness that could interrupt their ability to work is a genuine concern. Disability income protection is crucial as it provides financial security if you're unable to earn an income due to health issues. - read more
|
| A Millennial's Guide to Life Insurance For many millennials, navigating the complexities of personal finance and future planning can feel like a bewildering journey. Among these financial responsibilities, life insurance emerges as a paramount consideration. More than just a safety net, life insurance can be the cornerstone of a sound financial strategy, providing peace of mind for both the policyholder and their loved ones. - read more
|
| How Much Life Insurance Do I Need? There are many different reasons to purchase life insurance (generation skipping tax, estate plan, estate preservation, surviving spouse needs, planning for your children's future and more). There is no right amount of life insurance, but here are some guidelines that might help you decide how much life insurance you need. - read more
|
| From Illness to Injury: Understanding the Scope of Income Protection Insurance In the uncertain times we face today, where both health and economic climates are unpredictable, safeguarding your financial stability becomes paramount. This is where income protection insurance steps in as an essential safety net. For many Australian families, it's the buffer that ensures life's financial commitments are met, even when ability to work is compromised. - read more
|
A type of insurance that provides protection against claims resulting from injuries and damage to people and/or property.