Swiss Re Life & Health to pause new business in Australia

The move comes amidst growing concern over rising TPD claims.

Swiss Re Life & Health Australia will halt new business activities in the country from October 2025 as it reviews its product portfolio and works on improving the long-term sustainability of Total Permanent Disability (TPD) insurance.

The move comes amidst growing concern over rising TPD claims and their impact on the industry. 

According to the Council of Australian Life Insurers, insurers paid more than AU$2.2b in mental health-related TPD claims in 2024 (nearly double the amount five years earlier).

Paul Murray, CEO of Life & Health Reinsurance at Swiss Re, said the decision aims to support industry renewal and balance consumer protection with economic sustainability. 

“The shared goal across the industry is to preserve the social value of TPD – protecting Australians when they need it most – while creating a model that can endure economic cycles and demographic shifts,” he said.

Swiss Re said it will not take on new life insurance clients in Australia until the market shows a shift toward more sustainable product designs. 

Instead, it will work with existing retail clients, regulators, and industry groups to redesign products that better reflect changing societal needs.