Playing with fire: When stress becomes burnout

In an industry built on risk management, burnout is a significant threat that can often be overlooked by insurance professionals. Heavy workloads, disgruntled clients and long hours can result in emotional exhaustion, a detachment from work and reduced performance.

While it is a condition that resonates across all sectors - and is so prevalent that the World Health Organisation has officially recognised it as an occupational phenomenon resulting from unmanageable workplace stress -  burnout is becoming a significant concern in the insurance industry.

According to SuperFriend’s 2024 Indicators of a Thriving Workplace report, burnout rates in insurance industry sit at approximately 36 per cent. While it can have severe impacts on people’s mental and physical health, the financial impact of burnout is also huge, with burnout-related absenteeism costing countries like Australia $14 billion per year.

Symptoms of burnout

What is burnout, and when do normal levels of stress create a situation that can damage our health and have long-term impacts on our personal and professional lives?

In short bursts, stress can enhance performance and help us tackle problems effectively. Stress sharpens focus and boosts energy levels by releasing adrenaline and cortisol, enabling quick reactions. 

In contrast, burnout is characterised by emotional exhaustion, a lack of motivation, and chronic fatigue that persists even with rest, says Sarah McGuinness, founder of Revolutionaries of Wellbeing (ROW) and a wellbeing expert with a background in psychology.

“We all experience some level of stress - it’s that burst of adrenaline that helps us meet a deadline or perform well during a presentation,” she says.

“That heightened state can be motivating. But the problem arises when stress becomes chronic. When the sources of stress - be it long hours, demanding clients, or high-pressure environments - remain constant and unrelieved, it can lead to significant issues.

These can include problems with sleeping, taking longer to complete tasks, or finding it difficult to make decisions.

“When stress becomes chronic, it often manifests in noticeable changes,” says McGuinness. “You might find yourself sleeping poorly, increasing alcohol consumption, or neglecting activities that once brought you joy, like exercising or socialising.”

For others, changes in behaviour or appearance can be indicators of burnout. A colleague might appear disengaged, speak with less enthusiasm, or exhibit body language that suggests exhaustion, such as slumped shoulders, she says. 

“While occasional fatigue is normal, a consistent pattern over time without relief could signal deeper issues. It’s essential to recognise these signs early. If you notice persistent changes in yourself or colleagues, it may be time to seek support or adjust workloads to prevent further decline,” she advises.

Burnout in the insurance industry

Stephanie Thompson is Mental Health Advisor at SuperFriend, a not-for-profit workplace mental health research organisation backed by partners in the superannuation and life insurance industries.

She says burnout is a risk for any individual. 

“When we examine psychosocial hazards, such as high workloads, low job control, bullying, harassment, disengagement, and extreme remote working, we see that no one is immune,” she says.

In the insurance industry, the risks can be increased due to the nature of the work and type of roles.

“Customer-facing roles are particularly vulnerable due to factors like customer aggression. For instance, contact centre staff often bear the brunt of complaints and disgruntled callers, which can significantly impact mental health,” says Thompson.

Claims managers also face unique challenges, she adds. 

“In the aftermath of natural disasters, claims managers support individuals who’ve experienced trauma, which can lead to vicarious trauma, and this is a risk factor for burnout.”

Additionally, limited opportunities for debriefing, rigid work schedules and repetitive tasks can contribute to emotional exhaustion and disengagement. 

“To mitigate these risks, it’s crucial to incorporate regular debriefing sessions, offer flexible work arrangements, and diversify job responsibilities, creating a more supportive and sustainable work environment,” advises Thompson.

How to manage burnout

Preventing burnout starts with intentional self-care practices, says Thompson.  Some strategies she suggests include regularly assessing your stress levels and coping mechanisms, exercising, maintaining a balanced diet and prioritising sleep.

“It’s making sure that we build that time for self-reflection,” notes Thompson. “In many cultures, there’s often a strong emphasis on productivity, sometimes at the expense of rest.
“However, rest is integral to productivity. It’s essential to challenge the notion that constant activity equates to success.”

On a practical level, the way to manage stress before it becomes a problem includes finding opportunities to schedule downtime.

“Schedule exercise or schedule coffee with a friend and be intentional about it,” says Thompson. 

“It is really about boundary setting and acknowledging that things like perfectionism and anxiety and unrealistic expectations can contribute to a state of burnout.” 

McGuinness argues that calling on others for support is also important to identifying burnout and to gaining help in managing it.

Her current research involves conversations with people about the experience of burnout, including the methods they adopt to identify it.

“Most of the people I have spoken to weren’t able to recognise the change in themselves,” she says. “Your brain goes into survival mode, and you really need people around you to say, ‘I don't think that you are ok; I can see that you are in some distress’.

“The more you can have preventative conversations with your family and friends and give people permission to have those conversations with you, the better,” she adds.

Outside influences

While the WHO has defined burnout in a workplace context, there are arguments that its definition should be broadened and that other factors can play a role.

McGuinness says the WHO classification implies that if an individual is removed from the work environment, their condition should improve. But this doesn’t consider both occupational and personal factors.

Being a perfectionist, high achiever, or introvert can make people more susceptible to burnout. Lifestyle factors such as financial troubles, a poor social life, lack of support from colleagues, parenting or caring responsibilities, and poor work-life balance are also important to consider.

“Burnout is not solely confined to the workplace,” she says. “Personal challenges, such as family issues or overwhelming responsibilities at home, can also contribute.”
However, workplaces can help, says McGuinness. 

“I would encourage organisations to upskill on psychosocial safety, and there are some really great tools out there that talk about things like work demands and personal relationships and competing demands. 

"For example, SuperFriend offers a simple, evidence based, diagnostic tool called the Thriving Workplace Index which can show you how your workplace or team sits in regards to burnout, as well as psychosocial hazards. 

“It’s not only about preventing burnout but also fostering overall mental health and creating a healthy work environment,” she says.

The recovery process

Recovering from burnout can be a lengthy process, often taking several months or more. 

“Having been through burnout myself, I can say is not just the kind of exhaustion where you go on holiday and you come back feeling better, or you have a few nights sleep and feel better,” says McGuiness.

“It’s a bone crushing, total lack of motivation type of tiredness. It’s the kind of tiredness that is chronic and residual - it probably took a good three to six months before I could come back to work in any kind of capacity.”

Thompson says that receiving a diagnosis for burnout can be a nuanced process.

“If you did identify that you're not feeling great, that you’re exhausted and it may be tipping over into burnout, speak to your GP,” she says.

Thompson adds that the Burnout Assessment Tool (known as BAT) may be used during a discussion with your healthcare professional.

“SuperFriend’s research shows that nationally burnout sits at 55 per cent,” says Thompson. 

“The insurance industry is sitting quite positively compared to the national average of burnout, but 36 per cent is still too high and we need to take steps to reduce it.”