Swiss Re Halts New Life Insurance Business in Australia

The reinsurer highlighted that the evolving nature of work, increasing claims costs, and changing societal expectations have raised questions about the long-term viability of TPD insurance in Australia. Notably, insurers paid out over $2.2 billion in mental health-related TPD claims in 2024, nearly doubling the amount from five years prior.

Paul Murray, CEO of Life & Health Reinsurance at Swiss Re, emphasised the industry's shared goal of preserving the social value of TPD insurance while creating a model that can withstand economic cycles and demographic shifts. He stressed the importance of balancing protection with long-term sustainability to prevent rising premiums that could render insurance unaffordable.

During this pause, Swiss Re will continue to support its existing clients and collaborate with the broader industry and regulators to redesign products that align with evolving societal needs, providing consumers with greater certainty for future planning.

For business owners and HR managers, this development underscores the necessity of evaluating current insurance offerings to ensure they meet both employee needs and long-term sustainability goals. Engaging with insurers committed to product innovation and adaptability is crucial in navigating the changing landscape of corporate life insurance.