Swiss Health Insurance Premiums Surge: 2025 Outlook

A Deloitte study reveals that Swiss health insurance premiums are rising sharply, causing many policyholders to consider switching providers or adjusting their coverage. Despite high satisfaction with current insurers, support for a unified health insurance fund is growing, although the study suggests that this might not significantly lower premiums. The rising costs are eroding insurers' reserves, impacting their solvency. The study, based on a survey of over 1,000 people, highlights the potential for savings through switching insurers and the significant premium increases expected in 2025.

Swiss Health Insurance in 2025: Key Takeaways

Rising Premiums and Eroding Reserves:

• Health insurance premiums in Switzerland have been rising at an above-average rate for the past three years (2022-2024), impacting both policyholders and insurance providers.
• While insurers initially absorbed rising costs by tapping into their financial reserves, this has led to a decline in the industry's solvency ratio from 207% in 2021 to 121% in early 2024.
• Some insurers have fallen below the 100% solvency threshold, requiring them to take action to stabilize their financial situation.

Policyholder Sentiment and Potential Shifts:

• Deloitte’s survey reveals that 34% of policyholders are considering switching providers, and 20% are considering adjustments to their coverage, driven by the rising premiums.
• The willingness to switch is particularly high among those with the maximum deductible (51%) and those with alternative insurance models (41%).
• Policyholders in French-speaking Switzerland are more likely to switch compared to their German-speaking counterparts (38% vs. 31%).

Public Opinion and the Unified Fund:

• Public dissatisfaction with rising premiums is fuelling support for a unified fund as a potential solution, with support increasing from 65% to 70% between early summer and September 2024.
• Paradoxically, 75% of survey respondents express satisfaction with their current provider, including both supporters and opponents of the unified fund.
• This suggests that public support for a unified fund is primarily driven by the expectation of lower premiums.

Realistic Expectations and Potential Savings:

• Deloitte's analysis highlights that administrative costs represent only 5% of current premiums, indicating that even a highly efficient unified fund would likely result in only marginal premium reductions.
• Policyholders are encouraged to be proactive in comparing premiums and exploring options for savings, as "a great many holders of health insurance haven’t yet exploited the potential available for making savings, even though they could definitely benefit financially from switching provider or tweaking their cover." (Marcel Thom)

Premium Increase specifics:

• Average premiums are projected to rise by 6% in 2025, marking the third consecutive year of above-average increases.
• Deloitte's analysis reveals that the cheapest monthly premiums for adults could increase by as much as 8.8%.

Swiss Health Insurance Premiums FAQ

1. Why are health insurance premiums in Switzerland increasing?

Health insurance premiums are rising due to the increasing cost of healthcare in Switzerland. While health insurers were able to mitigate premium increases by using financial reserves between 2019 and 2022, this depleted their solvency ratios. As a result, insurers have limited options to control premium hikes, which are expected to stabilize to a long-term average of 3-4% in the future.

2. How are Swiss residents responding to these premium increases?

Many Swiss residents are considering switching health insurance providers or adjusting their insurance plans due to rising premiums. The survey by Deloitte revealed that 34% of respondents are thinking about switching providers, and 20% are considering adjustments to their coverage.

3. Who is most likely to switch health insurance providers?

The Deloitte survey indicated those with the maximum deductible of CHF 2,500 (51%) and those with alternative insurance models like HMO or telemedicine (41%) are most likely to switch providers. Additionally, residents of French-speaking Switzerland (38%) are more willing to switch compared to their German-speaking counterparts (31%).

4. What is the public opinion on a unified health insurance fund in Switzerland?

Public support for a unified health insurance fund is growing, with 70% of Swiss residents favouring the idea as a way to control rising healthcare costs. This represents a 5% increase in support since early summer 2024.

5. Are Swiss residents satisfied with their current health insurance providers?

Despite rising premiums and growing support for a unified fund, 75% of survey respondents remain satisfied or very satisfied with their current health insurer. This satisfaction is consistent across both supporters and opponents of the unified fund.

6. Why might a unified health insurance fund not significantly reduce premiums?

While a unified fund is perceived as a solution for lower premiums, administrative costs only represent 5% of total premiums according to the Swiss Federal Office of Public Health (FOPH). Even with increased efficiency, a unified fund would likely result in only marginal premium reductions.

7. How much are health insurance premiums expected to increase in 2025?

The average increase in health insurance premiums is projected to be 6% in 2025. However, Deloitte’s analysis indicates that the cheapest monthly premiums for adults could rise by up to 8.8%.

8. What advice do experts have for Swiss residents facing rising health insurance premiums?

Experts recommend that Swiss residents proactively compare premiums from different health insurance providers. Many policyholders haven't fully explored cost-saving options, and switching providers or adjusting coverage that could lead to significant financial benefits.

Conclusion

"Experience suggests that the increase in costs is likely to fall back to its long-term average of 3 to 4 per cent in the medium term," says Marcel Thom, Health Insurance Lead at Deloitte Switzerland.

iPMI Global CEO Christopher Knight concludes, “The Deloitte study paints a picture of a Swiss health insurance market in flux. Rising costs and pressure on insurer reserves are driving premium increases, prompting policyholders to consider switching or adjusting their coverage. Public support for a unified fund is growing, driven by the desire for lower premiums. However, the analysis suggests that a unified fund may not deliver the significant cost savings many expect. Policyholders are encouraged to be proactive in seeking out potential savings through provider comparisons and coverage adjustments.”