Psychological Illness Now the Leading Cause of Income Protection Claims in Ireland
Recent reporting by The Irish Times highlights a significant shift in workplace health trends, with psychological illness now the most common cause of income protection claims in Ireland.
Drawing on data from Aviva Life and Pensions Ireland, the figures show a 32% increase in income protection claims year-on-year, with psychological illness now accounting for 26% of all claims. The average claim duration stands at approximately 7.8 years, underlining the long-term nature of these cases.
Importantly, while cancer and cardiac conditions remain the leading causes of life insurance and specified illness claims, psychological illness is now the primary driver of long-term absence from work.
What This Means for Employers
Psychological illness is no longer a secondary or emerging issue. It is now the leading cause of long-term work incapacity from an income protection perspective, with direct implications for absence levels, workforce planning, and operational continuity.
These are not short-term absences. The reported average duration of 7.8 years highlights the scale of impact.
In practice, this means:
- Prolonged employee absence
- Increased pressure on remaining teams
- Complex case management over extended periods
These situations require significantly more time, resource, and judgement than standard sick leave management.
The risk sits inside the organisation
While external factors often play a role, in practice we frequently see a combination of personal and work-related factors contributing to these situations.
Common workplace elements include:
- Sustained high workloads
- Poor role clarity
- Limited management capability in handling sensitive issues
- Lack of early intervention
More often than not, these cases involve an interplay between workplace and non-workplace factors, rather than a single clear cause.
This creates a real minefield for employers to navigate, particularly where there is uncertainty around:
- what is driving the absence
- what the organisation can reasonably address
- how far responsibility extends
However, the presence of external factors does not remove the need to identify and address any work-related contributors at an early stage. Where this does not happen, issues can become compounded over time, and by the point a formal absence arises, the underlying factors are often already well embedded.
Early clarity on these factors is often the difference between a short-term issue and a long-term absence.
Where Employers Should Focus
The starting point is early intervention. Regular, meaningful check-ins and clear escalation pathways allow issues to be identified before they develop into more complex situations.
Manager capability is equally critical. Line managers are typically the first point of contact, yet are often the least equipped to manage these conversations. Supporting managers to recognise early warning signs and handle sensitive discussions appropriately is a key control measure.
Structured supports also play an important role, particularly in more complex or prolonged cases. This includes:
- Employee Assistance Programmes (EAPs)
- Occupational health referrals
- Phased return-to-work arrangements
Finally, employers should take a step back and assess the overall working environment. Workload distribution, expectations around availability, and boundaries between work and personal time all contribute to whether performance can be sustained in the longer term.
Final Thought
The data highlighted by The Irish Times reflects a broader shift that employers cannot ignore.
Psychological health is no longer solely a wellbeing initiative. It is now a core business risk with direct operational and financial implications.
Employers who respond proactively will be better positioned to:
- reduce long-term absence
- retain experienced employees
- mitigate future risk
Those who do not may see these issues surface later in more complex forms, including grievances, long-term absence cases, and potential legal exposure.
Need Support?
If you are seeing an increase in stress-related absence or are unsure how to manage a current situation, we can help.
At MSS The HR People, we support clients with absence management, complex employee relations issues, and practical, compliant HR advice. Feel free to get in touch by phone on 01 8870 690 or email.
