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:
| Heightened Road Risks During Holiday Season: Insurers Issue Warnings 19 Dec 2025: Paige Estritori As the Australian summer school holidays coincide with peak freight activity, insurers and transport specialists are raising concerns about heightened road risks. The surge in freight traffic, coupled with increased holiday travel, amplifies the potential for road incidents, particularly involving heavy vehicles. - read more |
| Rising Collision Risks Challenge Australian Fleet Operators 19 Dec 2025: Paige Estritori Australia's transport and haulage sector is currently navigating a period of heightened operational risk, marked by an uptick in both the frequency and severity of motor collision claims. This trend underscores the pressing need for fleet operators to adopt proactive risk management strategies and leverage advanced insurance solutions to safeguard their operations. - read more |
| Australian Life Insurance Premiums Set for 1.7% Growth in 2025 18 Dec 2025: Paige Estritori According to a recent report by Swiss Re, Australia's life insurance market is projected to experience a 1.7% real growth in premiums in 2025. This anticipated increase is attributed to easing cost-of-living pressures and the repricing of disability income policies. - read more |
| TAL's Health Sense Plus Now Covers Income Protection Policies 18 Dec 2025: Paige Estritori In a significant development for policyholders, TAL has expanded its Health Sense Plus program to encompass income protection (IP) policies. This initiative, effective from August 8, 2025, aims to incentivize proactive health management by offering premium discounts to clients who engage in preventive health checks. - read more |
| The Impact of Hobbies and High-Risk Activities on Life Insurance Costs Life insurance is an essential financial protection that provides peace of mind to policyholders and their loved ones. The premiums you pay are determined by various factors, including age, health, lifestyle, and occupation. - read more
|
| Finding Accidental Coverage When Comprehensive Income Protection Isn't an Option Income protection is an integral part of maintaining your financial security, especially in the event that unforeseen illnesses or injuries prevent you from working. Enabling you to receive a percentage of your regular income, this type of insurance provides a safety net, ensuring that you can continue to cover your living expenses and financial obligations whilst recovering. - read more
|
| How Income Protection Insurance Can Safeguard Your Financial Future Income Protection Insurance is a type of insurance policy designed to provide you with a substitute income if you are unable to work due to illness or injury. This form of insurance essentially acts as a financial safety net, ensuring that you can continue to manage your living expenses even when your regular earnings have been disrupted. - read more
|
| Top 5 Financial Tips for Australian Young Families Starting a family is one of life's most rewarding experiences, but it also comes with a unique set of financial challenges. For young families in Australia, where the cost of living can rise quickly, having a solid financial plan is crucial. Financial planning is not just about managing money; it's about creating a sense of security and peace of mind for your loved ones. - read more
|
The individual or entity who owns the insurance policy.