New research from Swiss Re Life & Health has found that early rehabilitation can significantly improve health, recovery and return-to-work outcomes for those experiencing injury or illness.
Rehabilitation Watch 2025 provides a market view of rehabilitation outcomes in Australia and draws on program-level data from 12 rehabilitation providers supporting 2,348 life insurance customers.
Swiss Re states the findings show strong and measurable health improvements, alongside clear opportunities to support customers earlier in their claim journey, particularly those experiencing mental health conditions.
When we get rehabilitation right, we deliver better outcomes…
The report concludes that effective rehabilitation benefits customers, while also supporting the long-term sustainability of the life insurance system.
Key insights include:
- Customers referred to rehabilitation within six weeks of onset of disability achieved RTW rates of 79%. However, the median referral time remains 46 weeks
Click to access the full report. - Mental health claims are increasing in volume and complexity, yet customers with mental health conditions are referred later than other groups (median 60 weeks)
- Rehabilitation delivers broad health gains
- 42% of rehabilitation programs are now delivered digitally or via telehealth
Swiss Re’s analysis indicates a $26.89 return on investment for every $1 invested in external rehabilitation services, based on actuarial assumptions regarding reserve release.
Lloyd Campbell Gibson, Head Life & Health Reinsurance Australia & New Zealand, Swiss Re, said: “When we get rehabilitation right, we deliver better outcomes for customers and strengthen the long‑term resilience of our industry.
“Early engagement and consistent pathways, especially in mental health, remain some of the most effective levers we have to drive sustainable results.”
He said the industry is moving beyond paying claims to partnering in a person’s recovery journey.
“This research helps us better understand the impact rehabilitation can have and where we can continue to improve.”
Click here to access the full report.
Also see our report: Call for Change to Address Contradiction Between Returning to Wellness and Remaining Disabled
Alas, the methodology appears deeply flawed and the headline number very misleading.
It seems infeasible that for a spend of ~$3.5k on rehab life Companies get a return of ~$94k. That suggest rehab gets people back to work almost a year earlier than if no rehab. There is no evidence of this at all.
I believe these results are dangerously misleading.
If I use the same formula, I can say that life companies make infinite value from every $ not spent on rehab.
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