Workplace mental health claims costing businesses more than double physical claims

Workers compensation insurer Allianz has released data revealing workplace mental health injuries are on the rise – with active psychological claims increasing by 5%, for the last financial year. In addition, Allianz found 69% of Australian employees surveyed have not had a conversation with their employer about their mental health since the start of the pandemic. This trend remains unchanged compared to 2020 (69%).

Allianz claims data showing that the average cost per active psychological claim is around 3.5 times that of active claims for physical injuries. COVID-19 has not only raised concerns about employee mental health, but also the lack of strategies that organisations have in place to support employees, with 43% of those surveyed saying their workplace has not introduced new mental health initiatives since the start of the pandemic.

The Allianz research of Australian employees and senior managers across industries shows that while both employees and employers agree there are challenges in the workplace, they also see a disparity between their challenges. Experiencing worries or concerns with balancing work and personal life since the pandemic (67%), increased pressure and workload (31%) and ineffective or unfair management (27%) are the main pressure points for employees. Employers, on the other hand, say that employees working remotely (68%), maintaining a positive culture (28%) and completing targets/deadlines (28%) are the biggest negative impact from a management perspective.

Not only has the research highlighted the evolving challenges of operating in a pandemic world, but it has also established that the line between work and personal life is blurred (45%). More than two in five (46%) Australian employees surveyed across all industries who find it difficult to separate their work and personal life say this is because they don’t have a transitional space and 40% feel there is an expectation to work longer hours due to COVID-19. Additionally, more than three quarters (77%) of Australian employees say they work some form of overtime to complete set tasks.

Julie Mitchell, Chief General Manager, Personal Injury at Allianz Australia, said: “Not all injuries in the workplace are physical, they can be mental too. We’re observing growth in the number of people accessing benefits for a psychological claim related to their workplace. What’s more, while the pandemic is impacting injured workers’ return to work – with treatments and appointments delayed – due to lockdowns, the loss of routine also has a direct correlation with an individual’s recovery and holistic wellbeing.

“We’re encouraging preventative measures and resources as key to supporting employees’ mental health while living in a pandemic world and beyond. The workplace needs to create a space that facilitates safe and secure conversations to ensure employees feel mentally supported throughout the pandemic and beyond. For this to happen, organisations need to constantly be updating and evolving their approach and making sure their team is aware of the support systems in place.”

Nearly three quarters (74%) of employers have a plan to implement mental health strategies and express more empathy and emotional intelligence (39%), empower employee workplace flexibility (37%) and create a space that fosters safe and collaborative environments (35%).

www.allianz.com.au/business/workers-compensation/mental-health