In recent times, Concordia, Groupe Mutuel, and Sanitas have emerged as the top gainers in terms of net customer acquisition among major health insurance providers in Switzerland, while Assura has experienced significant losses. KPT, on the other hand, has surprised many with its unexpected success.
### Market Dynamics in Swiss Health Insurance
The Swiss health insurance market has been significantly disrupted by sharp increases in premiums. In 2023, premiums rose by an average of 6.6%, reaching a staggering 8.7% increase this year. This surge prompted nearly a third of insured individuals to make changes to their basic health insurance coverage.
#### Shifting Landscape of Health Insurance Providers
– Concordia saw a net increase of 71,000 customers in basic health insurance, according to data compiled by Deloitte.
– Groupe Mutuel, Sanitas, and CSS also experienced significant net gains in customers.
– Assura, on the other hand, suffered a net loss of 115,000 insured individuals.
– The pressure on health insurance providers to retain customers remains high, with 44% of insured individuals planning to compare premiums and services in the upcoming fall.
### The Success of KPT in the Midterm
KPT, based in Bern, and CSS from Lucerne have emerged as key winners in the 2020-2024 period. KPT’s daring strategy of offering competitive premiums resulted in a net gain of 204,000 customers in 2023, leading to a phenomenon dubbed “The Miracle of Bern” in the industry.
### CSS: Growth Amid Solvency Concerns
CSS has witnessed significant customer growth in recent years, driven by competitive premiums and discounts on alternative insurance models. However, this growth has impacted the solvency of CSS, with reserves decreasing by over 700 million Swiss Francs from 2021 to 2023.
### Groupe Mutuel’s Reversal of Fortunes
Despite a decade-long trend of losing customers, Groupe Mutuel managed to reverse its fortunes in recent years by focusing on competitive premiums and expanding its portfolio of supplementary insurance offerings.
### Concordia and Sanitas: Stability Amid Growth
Concordia and Sanitas have demonstrated stability over the years, with both insurers gaining a significant number of customers in 2024. Their financial strength and commitment to customer service have positioned them as reliable choices in the market.
### Assura’s Strategic Shift
Assura, once known for its affordability, has shifted its focus towards service quality and customer interaction simplicity. This strategic pivot has led to a decline in its ranking as the cheapest health insurance provider, signaling a shift in priorities for the company.
### Swica’s Solvency Strategy
Swica, while experiencing a net loss of customers in 2023, has maintained a cautious approach to ensure solvency. Despite challenges, Swica’s loyal customer base and strong service reputation bode well for its future stability.
### Emerging Opportunities for Smaller Insurers
Smaller health insurance providers like EGK, Agrisano, and Aquilana are witnessing dynamic market developments, with many customers open to switching to smaller insurers offering competitive premiums. However, challenges such as solvency requirements and IT investments may pose obstacles for these players in the long run.
In conclusion, the Swiss health insurance landscape is evolving rapidly, driven by changing customer preferences, competitive pricing strategies, and a focus on service quality and financial stability. As the industry continues to adapt to market dynamics, insurers must innovate, engage with customers, and demonstrate resilience to succeed in this competitive environment.