Suva again announces low premiums for 2023

Suva posted a positive operating result of CHF 331 million for the past financial year. All insurance branches are financially in balance, as was announced on June 10, 2022, at the annual media conference. The good result also ensures low premiums for Suva policyholders in 2023.

Reimbursements of excess investment income

As already announced at the beginning of March, Suva was able to achieve a good investment result for 2021 due to positive stock market developments. The investment performance reached 7.5 percent. The largest contribution came from investments in equities and private equity as well as real estate and real estate funds. 

Due to the upper limit of the solvency ratio of 180 percent set by the Suva Council, excess investment income was segregated. The Suva Council subsequently decided to use CHF 824 million of this for the benefit of insured persons. In occupational accident insurance (OI) and non-occupational accident insurance (NIA), this corresponds to a refund of 20 percent of the net premiums for all insured persons. The Suva Council will decide on the use of the remaining withdrawn surpluses in subsequent years, depending on the financial situation. Suva's assets are fully earmarked. They cover Suva's obligations for around 80,000 current pensions as well as future medical expenses and daily allowances and other insurance benefits from accidents and occupational diseases that have already occurred.

Registered accidents increased

In 2021, Suva registered a total of around 450,000 accidents and occupational illnesses (previous year: 430,000). This is more than in the first corona year 2020, but still significantly less than in 2019 before the pandemic. The increase was greater for occupational accidents than for recreational accidents. The reason for this is that many sporting activities were severely restricted during the first five months of 2021. 

The number of new disability pensions continues to decline, with 1092 cases (previous year: 1141). According to Suva, this development is due to the fact that workplaces have generally become safer and prevention has reduced the number of accidents resulting in IV pensions. Due to the lower number of new disability pensions, provisions could be released in 2021. This contributes significantly to the positive annual result in 2021.

Continued low premiums in the coming year

Thanks to the favorable risk development and the reimbursement of surpluses from previous years, the average net premium rates in occupational accident insurance decrease significantly. In non-occupational accident insurance, average net premium rates are falling slightly due to the favorable risk development. Depending on the claims experience, however, there are different developments in the individual risk classes, according to the insurer. With the additional reimbursement of excess investment income amounting to 20 percent of net premiums in occupational and non-occupational accident insurance for all insured Suva companies, there will again be low premiums in both BUV and NBUV in 2023.

avance" strategy on track

Suva also announced that it is on track with its "avance" strategy. With the expansion of digitalization in claims management with the "smartCare" program, Suva has reached another milestone. The year 2021 was marked by preparations for the changeover. Starting in 2022, rules and regulations will take over the entire case management process. Specialists will be deployed for complex tasks or for personal support of companies and accident victims.

With the "Structuro" project, Suva has adapted its structures and processes to the changed requirements in claims management and in customer and partner support as of the beginning of 2022. In addition to the 18 existing agency locations, which are now grouped into seven regions, Suva has created four regional competence centers for claims handling. 

Prevention program 2020+

With the "Prevention Program 2020+", prevention work will be sustainably focused on the time horizon 2020 - 2030. Suva will continue to carry out risk- and impact-oriented prevention work and support companies on their way from a culture of rules to a culture of prevention, in which the vital rules become an integral part of daily work. In this way, Suva wants to work together with the insured companies to prevent even more accidents and occupational illnesses in the future.

Source: Suva