Mental Health Claims Businesses Impact

Mental health claims are rising sharply in Australia, creating significant financial and cultural challenges for businesses. ABILITY GROUP helps employers manage these risks, reduce premiums, and build safer, healthier workplaces.

Mental Health Claims: The Business Impact

The Growing Challenge

Safe Work Australia data shows psychological injury claims surged 161% in a decade, making mental health the fastest?growing workplace injury.

Unlike physical injuries, mental health claims are harder to diagnose, manage, and resolve, often leading to longer employee absences and higher costs. Allianz reports the average psychological claim cost rose to $42,335 in 2023, up from $32,769 in 2019.

Stress and anxiety compensation claims have risen as workplaces struggle with pandemic challenges and job uncertainty.

Psychological injuries are a growing concern, with 7,200 Australians receiving $543m in compensation, around 6% of claims

Mental health claims are harder to manage than physical ones and often carry higher premium costs, according to icare.

The average cost associated with a mental health claim is amount to approximately $104K whilst the average costs associated with a physical claim amount to $29K

The average duration of mental health claims is 209 days in contrast to physical claims which typically resolve in 47 days

Every year, compensation is provided to 7,200 Australians for work-related mental health conditions, equating to about 5% of workers’ compensation claims