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Swiss Re's Strategic Pause on New Life Insurance Business in Australia

Addressing Sustainability Challenges in TPD Insurance

Swiss Re's Strategic Pause on New Life Insurance Business in Australia?w=400

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Swiss Re Life & Health Australia has announced a suspension of new life insurance business activities in the country, effective October 2025.
This decision is driven by concerns over the sustainability of Total and Permanent Disability (TPD) insurance products, which have experienced a significant rise in claims, particularly those related to mental health.

In 2024, Australian insurers paid over AU$2.2 billion in mental health-related TPD claims, nearly doubling the figures from five years prior. This surge has prompted Swiss Re to advocate for a comprehensive redesign of TPD products to ensure long-term viability and affordability for consumers.

Paul Murray, CEO of Life & Health Reinsurance at Swiss Re, emphasized the need for industry-wide collaboration to balance consumer protection with economic sustainability. He stated that the goal is to preserve the social value of TPD insurance while creating a model that can endure economic cycles and demographic shifts.

During this pause, Swiss Re will not seek new clients in the life insurance segment but will continue to support existing retail clients. The company plans to work closely with industry stakeholders and regulators to develop products that better reflect evolving societal needs and provide consumers with greater certainty for future planning.

This move underscores the pressing need for the Australian life insurance industry to address the challenges posed by rising TPD claims and to innovate product offerings to meet the changing demands of the market.

Published:Sunday, 3rd May 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Replacement Cost:
The amount it would cost to replace or rebuild an insured asset with one of similar kind and quality, without depreciation.