Kathmandu. Swiss Life and Health Australia has suspended new commercial activity in the country since October.
The company has paused new business activity to begin work to improve the long-term sustainability of total permanent disability (TPD) insurance while reviewing its product portfolio. The company said the move comes amid growing concerns about rising TPD claims and their impact on the industry.
According to the Australian Life Insurers Council, insurers paid more than AU$2.2 billion in mental health-related TPD claims in 2024. That’s almost double the amount 5 years ago.
Paul Murray, CEO of Swiss Rima Life and Health Reinsurance, said the decision aims to support industry renewal and balance consumer protection with economic sustainability. “The industry’s common goal is to preserve the social value of TPD,” he said. It also aims to protect Australians when they need them most, and to create a model that can withstand changes in economic cycles and demographics. ’
Swiss Reel has said it will not offer new life insurance to customers in Australia until the market sees a shift towards sustainable product design. Instead, the company will work with existing retail customers, regulators and industry groups to redesign products that better reflect changing societal needs.
