13/10/2025
When insurers enter the mental health fight, watch the system lean.
Allianz Australia’s new Structural Change Program is an interesting market response. But the reason they’re moving is simple: soaring costs, especially in health & social care, are now unsustainable.
Here’s what the data shows, especially for healthcare:
The Health care & social assistance industry has the highest number of serious workers’ compensation claims for mental health conditions in Australia.
In 2020-21, the median compensation paid for serious mental health claims was $58,615, compared to $15,743 for all injury claims.
Mental health claims also come with much longer downtime: the median time lost for psychological injury was 34.2 weeks, vs 8.0 weeks for physical claims.
Across all industries, average mental-health-related claims run about
$45,900, roughly 5Ă— the average cost for physical injuries. Foremind
In dollar terms, $543 million was paid in workers’ compensation benefits for psychological injuries in Australia (across industries). Allianz Australia
When we layer on the emotional and operational toll in hospitals, clinics, aged care, where staff face trauma, burnout, violence, emotional load daily, these figures are more than statistics. They’re real-life losses of skilled people, escalating premiums, and system pressure.
At MACH Health, we believe healthcare deserves better than reactive patches. You need structural change: risk-measuring systems, predictive early support, embedded resilience.
Allianz’s move challenges us all:
Will your organisation wait for insurers to force change… or begin building a safer, sustainable system today?
New research from Allianz Australia reveals that supporting mental health in the workplace continues to be a challenge, as managers and employees alike are feeling mental distress as a result of workload.