Key Person Insurance :: News
SHARE

Share this news item!

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

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 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.

Share this news item:

Rate this article

0 Comments

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

Insurance News

Life Claims Inquiry Puts Delays Under Fresh Scrutiny
Life Claims Inquiry Puts Delays Under Fresh Scrutiny
05 Nov 2026: Paige Estritori
A new Life Code Compliance Committee inquiry has put renewed attention on how Australian life insurers manage longer-running claims, finding that avoidable gaps in information requests and customer communication can add pressure to already complex total and permanent disability and income protection matters. - read more
Life Insurers Move to Rewrite Code After Review
Life Insurers Move to Rewrite Code After Review
29 Oct 2026: Paige Estritori
Australia’s life insurance industry has moved into the next phase of reform after the Council of Australian Life Insurers released its response to the 2026 review of the Life Insurance Code of Practice. For businesses that use key person cover, the development matters because the code influences practical standards around communication, underwriting explanations, claims handling and support for customers dealing with difficult circumstances. - read more
Compliance Warnings Put Key Person Cover Quality Back in Focus
Compliance Warnings Put Key Person Cover Quality Back in Focus
16 Sep 2026: Paige Estritori
Australia's life insurance sector has received another reminder that compliance quality is not an abstract issue. The latest Life Insurance Code compliance reporting points to persistent weaknesses in how insurers communicate with customers, manage claims milestones and maintain controls when service pressure rises. - read more
Why Operational Resilience Now Matters for Key Person Cover
Why Operational Resilience Now Matters for Key Person Cover
09 Sep 2026: Paige Estritori
Australia’s life insurance sector is entering a more demanding phase of operational risk oversight, with APRA’s CPS 230 standard now shaping how insurers manage service disruption, outsourcing, technology failures and critical business processes. While this may sound like a back-office regulatory issue, it has practical consequences for businesses that rely on key person cover to protect cash flow, debt commitments and continuity planning. - 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
How to estimate key person insurance cover for an Australian business
How to estimate key person insurance cover for an Australian business
Key person insurance cover should reflect the financial impact a business may face if a critical person can no longer contribute. This guide explains practical factors Australian businesses can consider when estimating an appropriate cover amount. - read more
Key person insurance cover options: life, TPD and trauma explained
Key person insurance cover options: life, TPD and trauma explained
Key person insurance can help a business manage the financial impact of losing a critical person through death, total and permanent disablement or a serious illness, depending on the policy. This guide explains how key person life insurance, TPD insurance and trauma insurance differ, and what Australian businesses should consider when comparing cover options. - read more
Key person insurance and buy-sell insurance: how they differ
Key person insurance and buy-sell insurance: how they differ
Key person insurance and buy-sell insurance can both form part of business protection planning, but they solve different problems. One helps the business absorb the financial impact of losing a critical person; the other helps fund ownership transfer under a succession agreement. - read more

Knowledgebase
Insurance:
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of potential financial loss.