From a financial point of view, the Covid-19 pandemic had a considerable impact in 2021. There is a noticeable increase in costs in the area of basic insurance. Over the year as a whole, expenditure on benefits per insured person increased by 7.2% in compulsory healthcare insurance (AOS), a surge which led to an actuarial loss in this sector. In supplementary insurance, this increase in cost was also felt, leading to a lower technical result than that of the previous year. Despite this difficult context, CONCORDIA was once again able to associate its customers with its success: for the financial year under review, it paid them back almost CHF 125 million from its reserves.
Payments to policyholders year after year
CONCORDIA is headed by a non-profit association. From 2017 to 2021, it associated its customers who took out basic insurance in Switzerland and Liechtenstein with its success by paying them a total amount of CHF 446 million. In view of the very good situation of its reserves, CONCORDIA will make a new payment in 2022: this autumn, it will distribute the sum of CHF 73 million from its reserves to its AOS policyholders in Switzerland.
Still low administration costs
In 2021, 9.9 million invoices were processed, 1.4 million more than the previous year. This figure includes 1.2 million invoices for Covid-19 tests, which CONCORDIA checked and provisionally settled on behalf of the Confederation. Thanks to its service management and invoice verification, CONCORDIA saved a total of CHF 353 million in the year under review. Administration costs in AOS were kept low at 5.0%. Thus for each franc of premium, only 5 centimes were allocated to the administration.
Key figures for the 2021 financial year
- CH and FL insured persons in basic insurance on 1 January 2022: 626,000
- Total insured: 700,000
- Employees: 1,400
- Agencies and local agencies: 190
- Administration fee in OSA: 5.0 %
- Result of CONCORDIA Ass. Swiss Health and Accident Insurance Ltd: CHF – 89 million
- Result of CONCORDIA Insurance Ltd: CHF 44 million
- Earned premiums for all lines of insurance: CHF 2.9 billion
- Benefit expenses: CHF 2.7 billion
- LAMal combined ratio: 103.6%
- ACL combined ratio: 95.1%
Overall result of all insurance branches in Switzerland and in the Principality of Liechtenstein
Soaring benefit costs in OSA resulted in a loss of CHF 89 million for CONCORDIA Swiss Health and Accident Insurance Ltd. On the other hand, CONCORDIA Assurances SA ended the past financial year with a surplus of income of CHF 44 million despite a difficult economic situation. Total equity was reduced due to the losses recorded for CONCORDIA Swiss Health and Accident Insurance Ltd, falling by CHF 50 million to around CHF 1.4 billion, which corresponds to an equity ratio of 43%. Nevertheless, CONCORDIA continues to have all the provisions necessary to be able to honor its financial commitments to its customers at any time.
Compared to the previous year, premiums earned increased by CHF 11 million (+0.4%) to total CHF 2.9 billion. Due to a higher than normal increase in benefit costs, claims costs soared to CHF 2.7 billion, which represents an increase of CHF 149 million (+ 5.8%).
CONCORDIA manages capital investments of approximately CHF 2.7 billion. These funds reflect the company’s provisions and reserves. In the field of capital investments, the preservation of this heritage is CONCORDIA’s primary objective. Although it adopted a cautious strategy, it was able to benefit from the favorable development on the capital markets, both for CONCORDIA Swiss Health and Accident Insurance Ltd (+ 2.7 %) and for CONCORDIA Assurances SA (+ 2.4 % ).