This article contains discussions of suicide and related topics that may be distressing or triggering for some readers. If you or someone you know is struggling with thoughts of suicide or self-harm, please consider reaching out to a mental health professional or a trusted support service for help. Your well-being is important.
Suicide is an incredibly difficult and sensitive topic, particularly within the workplace where its impact can be profound and far-reaching. Suicide remains a leading cause of death among working-age adults in the UK, with workplace stress a significant contributing factor.
Marsh claims data reveals stress and psychosocial claims continue to rise. They represent an increasingly complex risk for businesses to manage. It’s essential that organisations acknowledge these challenges openly and take proactive steps to mitigate these risks effectively.
The number of stress-related claims made by Marsh clients rose from 108 in 2022 to 137 in 2023, reflecting increased awareness and reporting of mental health issues in the workplace. These claims typically take between three to five years to fully develop and settle due to the statute of limitations.
Total incurred costs, which include both paid and outstanding amounts, exceeded £2 million in both 2022 and 2023, highlighting the significant financial risk involved. The average cost per claim was £22,402 in 2022 but has decreased in recent years as newer claims are still maturing. Some of the largest claims have reached individual costs of over £500,000, emphasising the potential severity of these cases.
Although the amounts paid out in recent years are lower, outstanding liabilities remain high, indicating that these claims will continue to mature and may increase in cost over time.
The Compensation Recovery Unit (CRU) reports Employers’ Liability (EL) settlements have dropped from about 90,000 in 2019–20 to around 50,000 in 2024–25, reflecting fewer claims overall. However, the amount insurers repay to the government for benefits paid to claimants, like statutory sick pay, has increased to nearly £75 million in 2024–25.
Although fewer cases are settled, the average payment per claim is rising, likely because the cases are more serious or complex. These repayments only cover some costs and don’t include expenses like pain and suffering or legal fees, so the total costs are actually higher. Stress and mental health claims make up a large part of these EL claims, and their growing settlement amounts show they carry greater financial risks.
Work-related stress, bullying, harassment, and a bad work environment can harm mental health and increase the risk of suicide. Organisations like the Mental Health Foundation and Samaritans say that problems at work play a big role in people thinking about or attempting suicide.
Negative working environments not only increase the risk of employee suicide, legal consequences and stress-related claims but also have wider implications for both individuals and organisations. Poor workplace conditions can lead to deteriorating employee mental health, resulting in higher levels of absenteeism and reduced productivity. Additionally, a toxic work culture can damage an organisation’s reputation, making it harder to attract and retain talent. Addressing these issues is therefore crucial not only for safeguarding employee well-being but also for maintaining business performance and reputation.
To effectively address these challenges, businesses should adopt a comprehensive approach that embeds psychosocial risk management into their organisational frameworks:
This multi-layered strategy helps create a safer, healthier workplace while mitigating complex psychosocial risks.
The combined data on stress claims, Employers’ Liability settlements, and suicide highlights the urgent need for businesses to focus on mental health and psychosocial risk management. Key points are:
To support organisations in effectively managing psychosocial risks, Marsh provide a free psychosocial safety assessment which evaluates your workplace and identifies gaps and potential risk areas.
For more information, reach out directly to Mental Health & Wellbeing Practice Leader - Lorna Feeney.
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Learn more. Speak to our Mental Health & Wellbeing Practice Leader, Lorna Feeney.
Mental Health & Wellbeing Practice Leader, Marsh – Risk Consulting
Lorna is a qualified Clinical Hypnotherapist Practitioner, Mental Health First Aid Instructor and Head of Mental Health risk management for Marsh. Utilising her own and others’ experiences, Lorna provides a unique and people-centred approach to help organisations navigate mental health and wellbeing matters.
