Relationship breakdown often extends the duration of an insurance claim, delaying return to work, founder of The Separation Guide Angela Harbinson says. 

The business, which connects employees with funded legal, financial, and wellbeing support before issues escalate, says productivity drops by 30% when someone suffers poor mental health. The risk of physical claims also increases. 

Ms Harbinson tells insuranceNEWS.com.au the stress of a relationship breakdown affects sleep, mood, executive functioning and decision making.  

Yet relationship breakdown is a largely unaddressed insurance risk, she says, even as potential implications for insurers, employers and workers’ compensation are significant. 

The Separation Guide says it has "millions of behavioural data points," helping predict patterns to prevent escalation.  

"The insurance sector is particularly interested in our product because they see relationship breakdown as a risk trigger for claims and we have indicators that match risk to the employer, bank, superfund or health insurer," Ms Harbinson said. 

"Over the last two years, our data has shown several trends well before they played out in the sector. What we saw emerging is now playing out in workplaces across the country, as financial pressure, job uncertainty, and property price declines are hitting relationships hard. 

"Workplaces are feeling the productivity declines and rise in stress-related incidents. That is flowing into an impact for insurers as a claims risk." 

 A study by The Separation Guide and Emergency Services Foundation found 90% of people report unsafe mental fitness scores during relationship breakdown, often lasting multiple years. 

"Insurers now recognise it as a risk, either as one of the underlying causes of claims or as a life pressure point that extends the duration of existing personal risk claims, whether physical or mental-health related," Ms Harbinson said. 

"Much like mental health, menopause or caregiving support, separation is very common and impacts between 5-8% of the workforce each year. Separation support is the emerging trend for workplace support."  

Early intervention could reduce the cost in a workplace by around two-thirds, she says. 

The comments come as the Insurance News 2026 Wellbeing Survey is underway. Results will be shared online and in our magazine, outlining the issues employers need to address.  

Take this year’s survey here.