Allianz has reported a sharp increase in mental health claims over the past five years as employees feel increasingly burnt out juggling economic and work pressures.

The insurer’s latest workers’ compensation data shows active psychological claims volume rose 47.5% and there was a 30% increase in the number of days off due to mental health from 2019 to last year. Allianz says it is the largest workers’ compensation insurer in the country, with more than 155,000 businesses in its portfolio.

Factors including work-related harassment and bullying, pressure and stress/burnout are the main causes of primary psychological cases, accounting for 76-78% of all claims.

A survey commissioned the insurer in April and May found 48% of employees feel fatigued in their jobs and more than one-third are considering leaving their employers in the next 6-12 months.

About 46% say cost-of-living pressures are negatively affecting their job satisfaction, 33% say they are not adequately rewarded, and 25% cite increased workload for their mental exhaustion.

“Cost of living is having a direct impact on employee sentiment towards work,” Allianz said.

“The friction caused by economic pressures and internal employee wellbeing challenges can naturally lead to mental health challenges.”

Allianz chief GM for personal injury Julie Mitchell says mental health cases consistently have a higher average cost of claims than physical, with primary psychological claims on average 2.8 times more costly over the past five years.

In 2023, across all Allianz portfolios, the average primary psychological claim cost $42,335, compared with $32,769 in 2019, she told insuranceNEWS.com.au.

“While we’ve seen stigma around mental health reduce, the sad fact is we are seeing, and will continue to see, an increase in the frequency and complexity of psychological workers’ compensation claims unless organisations get on the front foot,” she said.

“It’s important now that organisations step away from the ‘one size fits all’ approach to mental health support, recognising that the unique experiences, requirements and support vary depending on background, occupations and personal circumstances.”

Surveyed employees called for more open and transparent conversations about individual workplace needs. Many also want management to prioritise clear communication channels to voice workplace concerns.