Swiss Re Suspends New Life Insurance Operations in Australia

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, emphasised 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.