Hannover Life Re of Australasia struck a deal earlier this year to acquire Swiss Re Life & Health Australia’s direct life insurance arm, known as iptiQ. The sale price wasn’t disclosed.
For Hannover, the move fits its strategy of expansion in the region. The transfer, still pending approval from the Federal Court of Australia and regulators, is expected to close within 18 months.
According to Hannover executives, the acquisition reflects confidence in the domestic direct life market and will reinforce the company’s competitive footing.
Swiss Re Life & Health Australia, meanwhile, has chosen a very different route. Starting this month, the reinsurer will suspend new life insurance business in the country.
Executives said the pause reflects the shifting realities of the workplace, rising claim costs, and consumer expectations that keep bending.
The company has flagged total permanent disability cover as an area that requires urgent redesign.
Industry data backs that concern. The Council of Australian Life Insurers reported that in 2024, payouts tied to mental health-related TPD claims exceeded A$2.2 bn ($1.43 bn).
That figure nearly doubles what was recorded just five years ago. The surge, insurers warn, is weighing heavily on the financial system.
Swiss Re stressed it won’t chase new retail clients until the market demonstrates progress toward sustainable products. Instead, the company will keep working with existing customers, regulators, and industry peers.
The stated aim: build products that reflect social change and give Australians a clearer sense of financial certainty.
Paul Murray, Swiss Re’s chief executive for global life and health reinsurance, called the current situation “a chance for renewal.” He said the challenge lies in preserving the social value of TPD while ensuring that premiums remain affordable.
Lloyd Campbell Gibson, who oversees life and health reinsurance in Australia and New Zealand, argued that the industry cannot stay locked on the narrow role of claim payments. “We need to partner with people across their health journey,” he said. If insurers commit to evidence-driven product adjustments, TPD could shift toward a more adaptive, accessible form of cover for future generations.
Our dedication to the Australia and New Zealand markets remains unwavering and this decision is necessary to safeguard our portfolio and to advocate for reform regarding product design
Lloyd Campbell Gibson, head of reinsurance Australia and New Zealand, Swiss Re
Unlike in Australia, Swiss Re’s New Zealand retail life insurance engagement will continue without interruption.
The company said its work there focuses on protecting individuals while managing the long-term sustainability of disability products.
Executives repeated that the group’s dedication to both the Australian and New Zealand markets hasn’t wavered.
Still, the pause in Australia is described as necessary – a defensive move to safeguard the portfolio and advocate for overdue product reform.
