Allianz Australia says it has seen a rise in workplace-related mental health claims, a sign that the pandemic continues to strain employee wellbeing across the country.

Active psychological claims rose 5% in the 2020/21 financial year from the prior corresponding period, the insurer says in the Finding Balance in the Modern Workplace report released today.

The report is based on claims data comparing the last financial year with the prior corresponding period from the insurer’s workers' compensation underwritten insurance portfolio in Australia.

The insurer says the report’s findings reinforce the need for employers to direct more resources to support workers during this difficult time and even after the pandemic is over.

The average cost per active psychological claim is around 3.5 times that of active claims for physical injuries, Allianz says, citing workers’ compensation data from its portfolio in the period from July 2016 to June this year.

“There is no doubt that the last 18 months have been tough, with our working environments and situations changing constantly,” Allianz Australia Chief General Manager Personal Injury Julie Mitchell said.

“Better understanding these changing environments and their impact on individuals’ mental health is key to achieving balance in the modern workplace, but also in proactively preventing and managing workplace mental health issues.”

She says not all injuries in the workplace are physical in nature.

“We’re observing growth in the number of people accessing benefits for a psychological claim related to their workplace,” Ms Mitchell said.

“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.”

Ms Mitchell says preventative measures and resources are key to supporting employees’ mental health while living in a pandemic world and beyond.

She says the workplace needs to create a space that facilitates safe and secure conversations to ensure employees feel they are being mentally supported by management.

“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,” she said.

The report also contains other significant findings from research commissioned by Allianz.

More than two in three Australians are struggling with balancing work and personal life since the start of the pandemic while 69% have not had a conversation with their employer about their mental health since the health crisis broke out last year.

About 40% feel there is an expectation to work longer hours due to COVID-19.

The research is based on an online survey of 1049 Australian employees and nationally representative sample of 524 Australian senior managers between July 26 and August 6.

“Working in a pandemic world has seen the line blurred between work and personal life, and while striking this balance is important for managers and employees alike, there is a disconnect in how to tackle the challenges ahead,” the report said.

Click here for the report.