Almost half of Australians experiencing financial insecurity

Almost half of Australians experiencing financial insecurity – study | Insurance Business Australia

Insurance News

Almost half of Australians experiencing financial insecurity – study

Claims data reveals at least half of the claims have been due to mental health

Insurance News

By
Jonalyn Cueto

Recent MetLife claims data reveal mental health is one of the main concerns of employees in Australia. Around 45% of all claims have cited mental health as a primary cause, and between 60% and 70% of the claims have cited it as a secondary cause.

Dr. Leena Johns, chief health and wellness officer at MAXIS Global Benefits Network (a joint venture between MetLife Inc and AXA) recently visited MetLife to speak about workplace megatrends and the role of insurance in the benefits scheme. She noted that there has been a spike in the numbers of reported mental health concerns post-pandemic, mainly due to financial stress and insecurity.

MetLife’s Employee Benefits Trends Study (EBTS) also showed that almost three-fourths of Australians reported experiencing financial distress. More than half reported feeling a lack of a sense of purpose.

“A one-size-fits-all approach fails to address individual needs, resulting in a lack of effectiveness in supporting and empowering employees,” Johns said. “Other factors should also be considered in order to deliver holistic programs that are valued by employees and provide real benefit.”

Among the factors suggested to be considered when setting up employee assistance programs are the culture and background and the age breakdown of the workforce. Programs would be more appealing if they are able to empathise with what influences a person’s attitudes as well as foresee what needs of the employees should be met.

According to MetLife research, 80% of employees are more likely to remain with their organization for the next 12 months if employers are showing employees’ health is prioritised.

Johns called for changes in the workplace programs to recognise the concerns of employees on financial stress and mental health. She laid out some suggestions, including providing avenues for financial advice, such as for money management and setting financial goals, and enrolling employees in health programs that offer mental health assistance.