Politics · Switzerland · 10 hrs ago
Swiss government rejects mandatory use of insurers’ investment income to cut premiums
The Swiss Federal Council rejected a plan to require health insurers to use all investment income to cut premiums.
The proposal came in a parliamentary motion.
Health insurers can currently choose whether to use money earned from financial investments to lower premiums, and how much to use.
The Council said most insurers would do so if they had enough capital of their own.
It argued that keeping the choice voluntary can help avoid extra swings in premiums.
Investment income may also be used to build up reserves when needed.
The Council concluded that a mandatory system is not needed for now.
The Swiss Federal Council rejected making health insurers use all their investment income to reduce premiums.
Insurers will remain free to decide whether to use investment income for premium reductions and how much to use.
The Council said the voluntary system helps avoid additional fluctuations in premiums.
It also said investment income could be used to build reserves.
In 2022, 32 of 51 insurers used the voluntary mechanism.
- Who
- The Swiss Federal Council and Swiss health insurers.
- What
- The Council rejected a proposal to require insurers to use all investment income to reduce premiums.
- When
- The Council stated its position on 14 October 2026.
- Where
- Switzerland.
- Why
- The Council said the voluntary system helps avoid additional premium fluctuations and allows income to be used to build reserves.
Parliamentary motion supporters
Swiss Federal Council
Use of investment income
Parliamentary motion supporters
The motion called for making the use of all insurers’ investment income to reduce premiums compulsory.
Swiss Federal Council
The Council said insurers should not be required to use all their investment income to reduce premiums.
Whether to make the practice mandatory
Parliamentary motion supporters
The motion sought to make the practice obligatory.
Swiss Federal Council
The Council said an obligatory mechanism was not currently necessary.
32 of 51 health insurers used the voluntary mechanism to reduce premiums.
The Federal Council stated it would not require insurers to use all investment income to reduce premiums.
- Insurers using the mechanism in 2022
- 32 of 51
- Proposed change
- Make use of all investment income to reduce premiums compulsory
- Federal Council position
- No mandatory mechanism
- Council’s stated concern
- Additional fluctuations in premiums
3 sources
What people are saying
It is not currently necessary to introduce a mandatory mechanism.