Unlike for basic insurance, the benefits for voluntary supplementary health insurance are not prescribed by law. The diversity is correspondingly great. More than 1000 products with different benefits and rates are currently on the market. FOPI has the legislative mandate to ensure that rates are neither so high as to constitute abuse nor so low as to threaten solvency.

Semi-private and private supplementary health insurance
The number of policyholders with "private hospital room" and "semi-private hospital room" supplementary health insurance decreased steadily by 7% between 2002 and 2006. This is likely due to the fact that many insurers now only accept a limited number of older applicants and that younger policyholders are increasingly forgoing supplementary hospital insurance.

Effective as of 1 January 2007, 15 out of a total of 55 insurers in this market segment will adjust their premiums. Rate adjustments have been approved for 39 out of a total of 236 products, corresponding to about CHF 800 million premium income and representing about one third of the market supply for supplementary hospital insurance.

Calculated across the whole segment, this entails a slight rise in premiums of 0.5% per insured person. Not contained in this figure are age-related premium increases arising from entry into higher age bracket, which is not subject to approval. The rate adjustments may entail both increases and decreases for individual policyholders, as long as these changes are structured in accordance with risk and cost.

In recent years, the pressures have increased significantly in this segment. Insurers have reacted by creating a wide range of incentives, so that they can maintain an insurance portfolio that is as attractive as possible. The current pressure on rates is also seen in the fact that the annual premium adjustments for semi-private and private supplementary hospital insurance have only partially covered the inflation of the insurance benefits paid since at least 2004.

Outpatient care, general hospital coverage, dental and nursing insurance
With respect to mass business, i.e. the other benefits covered by supplementary health insurances that are generally available at a low cost, the premiums will increase by an average of 1.2% effective as of 1 January 2007. This category of supplementary insurance encompasses benefits such as outpatient care, general hospital coverage, and dental and nursing insurance.

Rate adjustments will affect 46 out of a total of 628 products. Unlike in the case of semi-private and private supplementary health insurance, the average premium increases will fully cover the increase in insurance benefits paid. Claims increases have already been covered by corresponding premium increases in previous years.

Address for enquiries:

Publisher:

Federal Office of Private Insurance

Internet: http://www.bpv.admin.ch