Insurance – Provident: more insured for Helvetia

The insurer Helvetia has grown in the provident sector and shows an increase in policyholders. The volume of premiums increased by 2% over one year.

View of the headquarters of the Helvetia insurance group in St. Gallen. Keystone / archive

The insurer Helvetia managed to grow in occupational pensions last year. The premium volume increased by 2% year on year to 2.66 billion francs, the company said on Wednesday.

Periodic premiums increased 2.5% to 1.30 billion, while single premiums increased 0.6% to 1.36 billion. “Semi-autonomous solutions have largely contributed to this growth,” said the press release.

The number of policyholders increased by 5% to reach 247,411 while group contracts increased by 3% to 18,019. “Given the unrealistic framework conditions with a far too high conversion rate in compulsory BVG insurance, Helvetia continues to pursue a restrictive underwriting policy,” said the insurer.

Operating costs fell 2% to 101.1 million. Per active insured person, costs were reduced by 8% to 438 francs.

The assets of the compulsory BVG were subject to the minimum interest rate of 1%. Credit balances were also credited with 1%.

In cases subject to the minimum rate, Helvetia paid 654.2 million benefits to the insured, which brought the payment rate to 92.2%, compared to 90.5% in 2018. Part of this amount was used to strengthen reserves.

The net performance calculated on the basis of the market value was + 5.17%, in particular thanks to the “very positive development on the equity market, the continued fall in rates and its corollary, the rise in bond prices, ”explains Helvetia.

Urgent need for reform

Last year, almost 185 million had to be redistributed, from active policyholders to pensioners, an amount higher than that of the previous year (2018: 166 million).

“A reform of the occupational pension is urgent and imperative”, writes Helvetia in its press release. The insurer wants the conversion rate and the minimum interest rate to be adapted to demographic changes and to “extremely low” interest rates. “Only in this way can the systemic crisis of the second pillar be overcome,” insists the insurer.

In addition, the coronavirus pandemic illustrates the importance of “a secure pension solution, which only a few Swiss insurers still offer in the form of comprehensive insurance”. However, if small and medium-sized businesses are to continue to have access to it, “the Federal Council must propose a reform capable of winning the majority”.

((ATS / NXP)

Posted today at 8:52 am

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