Key Person Insurance :: News
SHARE

Share this news item!

Swiss Re Suspends New Life Insurance Operations in Australia

Reinsurer Calls for Sustainable Product Design Amid Rising TPD Claims

Swiss Re Suspends New Life Insurance Operations in Australia?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

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

According to the Council of Australian Life Insurers, insurers disbursed over AU$2.2 billion in mental health-related TPD claims in 2024, nearly doubling the figures from five years prior. This surge has prompted Swiss Re to advocate for a comprehensive industry-wide reform to ensure the long-term viability of life insurance offerings.

Paul Murray, CEO of Life & Health Reinsurance at Swiss Re, emphasised the need for a balanced approach that preserves the protective role of TPD insurance while maintaining economic sustainability. He stated, "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."

During this pause, Swiss Re will not engage with new clients in the Australian life insurance sector. Instead, the company plans to collaborate with existing clients, regulators, and industry bodies to redesign products that better align with 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 adapt to changing claim patterns and societal expectations. For policyholders, it highlights the importance of staying informed about potential shifts in product offerings and the overall landscape of life insurance in Australia.

Published:Thursday, 9th Apr 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.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Latest APRA Data Points to a More Stable Life Insurance Sector
Latest APRA Data Points to a More Stable Life Insurance Sector
19 Aug 2026: Paige Estritori
APRA's latest quarterly life insurance statistics suggest Australia's life insurance sector is operating on a steadier footing, with profitability and capital strength remaining key themes across the market. For business owners, this is encouraging, but it should not be mistaken for a signal that premiums, underwriting or claims expectations will automatically become simpler. - read more
What the Genetic Testing Reforms Mean as Implementation Nears
What the Genetic Testing Reforms Mean as Implementation Nears
12 Aug 2026: Paige Estritori
Australia's proposed ban on life insurers using adverse genetic test results is moving from a consumer protection debate into a practical implementation issue for insurers, advisers and policy applicants. For businesses that rely on key person cover, the change is worth watching closely because underwriting rules influence both access to cover and the confidence applicants feel when disclosing medical history. - read more
What the Genetic Testing Shift Could Mean for Key Person Insurance
What the Genetic Testing Shift Could Mean for Key Person Insurance
05 Aug 2026: Paige Estritori
Australia’s life insurance sector is moving closer to a major change in how genetic information is treated during underwriting. The Federal Government has been progressing a legal ban on the use of adverse genetic test results in life insurance assessments, replacing the industry’s current self-regulated approach with stronger consumer protections. - read more
Life Insurance Complaints Highlight the Value of Claims-Ready Cover
Life Insurance Complaints Highlight the Value of Claims-Ready Cover
29 Jul 2026: Paige Estritori
Australia's latest financial complaints trends are a timely reminder that life insurance is not just about the premium on the page. For business owners arranging key person insurance, the real test of a policy often comes at the most stressful moment: when a claim needs to be assessed quickly, clearly and fairly. - read more


Life Insurance Articles

The Role of an Insurance Broker in Securing Keyperson Insurance Coverage
The Role of an Insurance Broker in Securing Keyperson Insurance Coverage
Keyperson insurance is a type of business insurance designed to protect companies from financial losses that may occur due to the sudden loss of a crucial team member. This insurance policy provides a financial safety net that companies can rely on in difficult times, ensuring continuity and stability. - read more
Key Person Insurance: Protecting Your Most Valuable Assets
Key Person Insurance: Protecting Your Most Valuable Assets
Key person insurance is a form of business insurance designed to help protect a company when a vital person, such as a business owner, executive or indispensable employee, dies, becomes incapacitated or is otherwise unable to continue in their role under the terms of the policy. It provides a financial safety net for the business during a difficult transition. - read more
Protecting Your Startup: Understanding Keyperson Life Insurance Options
Protecting Your Startup: Understanding Keyperson Life Insurance Options
Keyperson life insurance is a special type of coverage designed to protect businesses against the financial impact associated with the loss of a key team member. Essentially, it acts as a safety net for companies, ensuring that the sudden loss or absence of crucial personnel doesn't jeopardize business operations or continuity. - read more

Knowledgebase
Copayment:
A fixed amount you pay for a covered healthcare service, usually when you receive the service.