The insurance industry has experienced a substantial escalation in the number of mental health claims in recent years. While physical workplace safety remains essential and is well documented, psychological injury presents a more complex challenge for insurers. It's both an ethical concern and also one of the most significant cost drivers that insurers currently face.
This October, as Australia observed National Safe Work Month, the 2025 theme "Safety: Every Job, Every Day," emphasised that workplace safety is a daily responsibility across all industries and occupations. Supporting this initiative, Gallagher Bassett launched its second annual campaign with a focused message: Psychological safety demands urgent industry attention every day.
A Reactive Approach Means More Claims
Mental health claims carry substantial costs. Psychological injuries often involve complex recovery pathways, extended timeframes, and intensive case management. For insurers, the reactive model no longer delivers effective results. Responding only once claims are made means absorbing higher costs and delivering poorer outcomes.
"We have seen a significant increase in the number of mental health claims over the past five years," confirms Emma Hosking, head of Government Partnerships at Gallagher Bassett Australia. "With this increase, we are now being proactive and are focusing on supporting organisations much earlier — at the front end of the wellbeing continuum."
Gallagher Bassett has embraced this shift towards prevention and trained case managers with specialised skills for psychological injury claims.
End Stigma, Open Dialogue
Last year's debut Safe Work Month campaign sparked industry-wide conversations. This year, Gallagher Bassett is championing a primary goal of reducing the stigma around help-seeking.
"Our aim this year is to encourage an open dialogue around psychological safety and wellbeing, and, most importantly, improve the help-seeking culture in Australian workplaces," Hosking explains.
I am back at my previous employment, in the construction game. To be honest, I've only been able to do it because of my case manager — he lifted me up.
For an insurer, this goal means fostering an internal environment that supports their clients and policyholders — where seeking help is viewed as a sign of strength, not weakness.
To bring this message powerfully to life, Gallagher Bassett's campaign features videos sharing real-life accounts from professionals who experienced physical and psychological injuries following a critical workplace incident.
Gallagher Bassett recently worked with a construction industry client whose workplace accident severely impacted his mental health. Here's what he shared: "I am back at my previous employment, in the construction game. To be honest, I've only been able to do it because of my case manager — he lifted me up."
Preventive wellness as crucial as empathetic claims management
Gallagher Bassett's program, led by Hosking, emphasises that a proactive approach achieves better outcomes and more desirable financial results for insurers. Organisations can limit escalations by implementing health and wellbeing programs before formal claims arise.
The success of Gallagher Bassett's public sector wellbeing programs in Tasmania and the Northern Territory shows that prevention works. These initiatives focus on early detection, wellbeing literacy, and creating organisational cultures where seeking help is perceived as a strength.
And the results are compelling. Participants show reductions in depression, anxiety, and lifestyle severity scores. This reduction means fewer claims, lower costs, and better outcomes for insurers.
Gallagher Bassett's Safe Work Month campaign offers a blueprint: Combine empathetic claims expertise with preventive wellness programs. With this approach, Gallagher Bassett aims to inspire more insurers and employers to shift from being reactive payers to proactive partners in human health and risk mitigation.
Learn more about Gallagher Bassett's campaign and the empowering stories of those we have supported.
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