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Swiss face surging insurance premiums

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12:02 CEST+02:00

Swiss residents are likely to see surging life and health insurance premiums, according to new study by accounting firm Ernst & Young.

The survey of 50 leading Swiss firms offering health, life and other forms of insurance found higher costs related to new capital requirements could be passed on to customers

Ernst & Young said a new solvency test introduced in January was forcing insurers to revaluate their product pricing in the face of rising administrative costs.

“Adjustments of the investment portfolio, buying additional reinsurance, or launching new products were all separated decisions under the old solvency regime,” Hans-Jürgen Wolter, a Zurich-based partner at Ernst & Young and former Chief Risk Officer at Swiss Life, told Bloomberg News on Thursday. “Now these decisions have an impact on your solvency ratio.”

Popular pension products known as berufliche Vorsorge (BVG) may also no longer be offered by some insurers, the study said.

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