Allianz claims data shows a 46% increase in workers’ compensation volume since pre-covid, while the cost of claims jumped 36%. 

It shows a 39% increase in average days taken off work due to mental health in the last four years – equating to 76 workdays off per claim in the year to June 30. 

Across all portfolios over the past five financial years, psychological claims are more likely to experience time loss than physical claims. 

Payments to psychological claims are 2-7 times higher than physical ones, with work-related harassment and work pressure are the main drivers. 

“If changes aren't made, we're likely to see an increase in psychological injuries and ongoing employee turnover,” Allianz Australia Personal Injury GM Julie Mitchell said. "We encourage organisations to think through practical solutions that can improve the mental health outcomes for their employees.” 

An Allianz survey of 1500 employees and 521 managers found 33% reported fatigue and burnout, while almost a quarter felt they were underpaid. Yet of managers surveyed, 89% were satisfied with their organisation’s ability to create mentally healthy workplaces for employees.  

“Just 33% employees share the same sentiment,” Allianz said. 

The insurer says empathic and emotionally intelligent environments, adequate remuneration and clear processes to communicate concerns were listed as measures staff want to drive improved mental health outcomes. 

Allianz recommends training for leaders, a diverse peer support network, regular check-ins, and anonymous reporting mechanisms.  

"Ensure clear processes and policies are in place to communicate workplace concerns,” it says. 

Leaders should develop a matrix for transparency around access to career opportunities, take emotional intelligence training, and use processes that are free from bias such as diverse interview panels. 

Policies should ensure workloads are achievable and avoid work communication outside of agreed hours. 

“Encourage open and safe dialogue with employees on what balance looks like for them,” Allianz says.