Allianz workers’ compensation claims data shows the proportion of mental injury cases has increased, while employees surveyed by the insurer report losing sleep because of work stress.

Mental injury claims made up 16.3% of the insurer’s workers’ compensation caseload last year, up from 13.9% in 2024.

“With psychological injuries costing 2.7 times more than a physical injury, there has never been a better time for organisations to invest in initiatives to improve employee wellbeing,” Allianz said.

Research commissioned by the insurer – which provides workers’ compensation support to about one-quarter of ASX 200 companies – shows nearly 2 million employees are sleep-deprived.

About 74% of the surveyed workers say their employers have no clear initiatives and support in place to reduce burnout and work stress.

Nearly half want employers to invest in mental health days and wellbeing leave, and 31% would value initiatives that reduce admin and unnecessary tasks that contribute to “cognitive overload”.

About 35% want better office benefits such as free coffee and lunches, to allow for social connection and breaks in work, and 18% would be open to negotiating their salary for flexible or hybrid working conditions.

“We know organisations care deeply about their people, but there’s a clear opportunity for leaders to incorporate feedback from employees to improve their approach to workplace culture, job design and support,” Allianz Australia national manager for mental health strategy Brianna Cattanach said.

“It’s a critical time for Australian leaders and organisations to evaluate if their current wellbeing and cultural initiatives are positively impacting their employees.

“By doubling down on the fundamentals of culture, job design and capability, organisations can start to truly turn the dial on workplace burnout.”