Swiss Re Life & Health Australia has halted new business activities in Australia from October 2025 as part of efforts to drive sustainable product design, particularly in Total Permanent Disability (TPD) insurance.
The reinsurance firm announced the move in a 23 October 2025 press release, saying it will not take on new life insurance clients “until the market demonstrates a clear shift to sustainable product design.”
In the meantime, Swiss Re will continue to work with its existing retail clients and the wider industry to redesign products that respond to evolving societal needs. The firm said, “The changing nature of work, rising claims costs and evolving societal expectations have created discussion around the long-term sustainability of TPD insurance in Australia.”
The Council of Australian Life Insurers reported that in 2024, insurers paid more than A$2.2bn (US$1.39bn) in mental health-related TPD claims. That figure is nearly double the amount recorded five years earlier, creating strain on the Australian financial system.
Swiss Re’s head of life and health reinsurance for Australia & New Zealand, Lloyd Campbell Gibson, said the company remains committed to the Australian and New Zealand markets.
“[T]his decision is necessary to safeguard our portfolio and to advocate for reform regarding product design. As an industry, we must transition from the sole focus of claims payment to partnering on an individual’s health journey. Through evidence-based changes, TPD can become a more adaptive and accessible form of protection for future generations,” he said.