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CSS Insurance

Risk compensation

A system of mandatory insurance, with a requirement to admit all applicants and a uniform premium, needs a functioning system of risk sharing and compensation between insurers. Otherwise the incentives under the current system to hold as many "good risks" (and as few "bad risks") as possible in the portfolio are too great. Optimised risk compensation makes the hunt for healthy insured persons and the marginalisation of sick ones unattractive. It is the prerequisite for meaningful competition on the domestic market, with a focus on the cost of services, in particular as regards the abolition of the obligation to contract. CSS Insurance welcomes the Federal Council’s decision to further refine the risk compensation system by taking into account a further morbidity factor in two steps (the cost of medication from 2017 and pharmaceutical cost groups from 2020). In future, CSS will continue to play an active role in the development and improvement of the optimum risk compensation system. However, CSS is against maximum risk compensation, as this would entail too much bureaucracy.