If benefit costs are lower or investment income higher than expected, we have surpluses from mandatory health insurance. We generally pay these surpluses into the reserves in order to keep premiums as moderate and predictable as possible for our clients.
Frequently asked questions
We set premiums to barely cover the benefit costs we actually expect to incur. As a health insurer, if we still generate a surplus this can have one of two reasons: either the benefit costs were lower than originally expected, or the income earned from investments was higher than expected. Positive results for the year (surpluses) flow into the reserves.
Reserves provide a safety cushion for leaner times. As a health insurer, they ensure that we can still pay all the bills of our insured persons even in an extraordinary situation.
By the way: the establishment of reserves by health insurance companies is governed by law (Health Insurance Oversight Act KVAG, Art. 14). The reasons described above (lower benefit costs and higher investment income than expected) could mean that the reserves are increased by surpluses. On the other hand, if the reserves fall below the level stipulated by law, the health insurers in question must increase the premiums they charge their insured persons.
CSS focuses on using any surpluses from basic insurance to calculate tight premiums. We will continue to follow this principle in future. We want to offer our clients premiums that are as attractive as possible. That’s why we pass the surplus from basic insurance on to clients in the form of moderate premiums in the following years. Repayments should remain an exception and should only be made when the accumulated reserves are excessively high.