With the cost of health insurance set to rise by 8,7 percent on average next year, and the deadline to change providers fast approaching, a new survey by Deloitte has revealed that over a million people in Switzerland are now looking to make the switch. They found that many are resorting to budget providers in order to find the best deal.

15 percent want to switch Swiss health insurer 

According to the report, given to CH Media, Deloitte expects up to 15 percent of people in Switzerland to change their basic health insurance package this year. “That would be between 1,3 and 1,4 million people,” noted Deloitte insurance expert Marcel Thon. 

Thon said that this year, the “cheapest insurance models are disproportionately affected by premium increases”, meaning those signed up to these plans are most likely to switch again. For example, among those who chose the cheapest insurance plan for their canton last year, along with a deductible of 2.500 francs, costs are expected to rise by over 13 percent when deals are renewed for 2024.

Budget health insurance providers in Switzerland under pressure

Region also has a strong part to play, with Thon noting that, perhaps unsurprisingly, those in places where premiums are set to rise most - Lugano and Locarno, among others - are the most likely to switch, as opposed to policyholders in places where premiums will rise more slowly - like Uri and Nidwalden. 

The desire to switch deals for 2024 comes after a large number of people flocked to cheaper providers last year. This influx of new policyholders put a massive strain on smaller discount brands, with Deloitte warning that budget providers are struggling to maintain their finances due to the huge amount of people on their cheaper deals. The Federal Office for Public Health recently admitted that many providers are having to spend through their reserves to stay afloat.

New hope for Swiss insurance reform

On a more positive note, with the President of Switzerland and Health Minister Alain Berset set to leave office at the end of the year, Comparis expert Felix Schneuwly told CH Media that the change in leadership may provide an opportunity to make one of the plans to reduce premiums into law. He argued that political caution and inaction were some of the main reasons why premiums are so high.

For this year, Concordia was deemed to have the cheapest health insurance premiums on average. However, Nau.ch explained that the company is unlikely to see a large influx of new policyholders, as unlike last year the savings potential for most will not be worth it. 

Those who do want to make the switch should take out their new deal with their new provider, and inform their old one of the change in writing. It’s recommended to have the termination letter in the post by November 15, with the deadline for switching falling on November 30.