Switzerland isn't just famous for its chocolate and mountains; it is a towering global insurance powerhouse, where the industry safeguards over CHF 1.2 trillion in assets and employs over 140,000 people to manage everything from everyday risks to pioneering climate and cyber reinsurance for the world.
Key Takeaways
- In 2022, the Swiss insurance market generated total gross premiums of CHF 68.4 billion, marking a 2.8% year-on-year growth
- The Swiss insurance industry's total assets under management reached CHF 1.2 trillion as of end-2022
- Switzerland held a 12.3% global market share in reinsurance premiums in 2022, totaling USD 42.1 billion
- In 2022, Swiss life insurance premiums totaled CHF 42.1 billion, up 3.5% from 2021
- Group life insurance accounted for 62% of Swiss life premiums in 2022 at CHF 26.1 billion
- Individual life policies numbered 4.2 million in Switzerland in 2022
- In 2022, Swiss non-life insurance premiums amounted to CHF 26.3 billion, growing 4.2%
- Motor vehicle insurance held 32% share of non-life premiums at CHF 8.4 billion in 2022
- Property insurance premiums totaled CHF 7.1 billion in 2022, up 3.8%
- In 2022, Swiss reinsurers wrote global gross premiums of USD 42.1 billion
- Property-catastrophe reinsurance capacity from Switzerland was USD 15.2 billion in 2023 renewals
- Swiss Re's gross premiums were CHF 20.5 billion in 2022
- The Swiss insurance sector employed 142,000 FTEs in 2022, with 35% in administration
- FINMA supervised 242 insurance groups with 1,200 entities in 2022
- SST (Swiss Solvency Test) compliance was 98.5% for insurers in 2022
Swiss insurance grew robustly in 2022, highlighting its major global reinsurance role.
Life Insurance
- In 2022, Swiss life insurance premiums totaled CHF 42.1 billion, up 3.5% from 2021
- Group life insurance accounted for 62% of Swiss life premiums in 2022 at CHF 26.1 billion
- Individual life policies numbered 4.2 million in Switzerland in 2022
- The savings component of life insurance premiums was CHF 28.4 billion in 2022
- Life insurance claims payouts reached CHF 12.3 billion in 2022, a 4% increase
- Occupational pension premiums grew 2.9% to CHF 52.6 billion in 2022 (including 2nd pillar)
- Surrender rates in Swiss life insurance averaged 5.2% in 2022
- Unit-linked life products represented 18% of new life business in 2022
- Average life expectancy used in Swiss life pricing was 83.2 years for women and 80.1 for men in 2022
- Term life insurance coverage ratio was 1.8x annual salary for Swiss households in 2022
- Endowment policies payouts totaled CHF 8.7 billion in 2022
- New life business APE (annual premium equivalent) was CHF 5.1 billion in 2022
- Lapse ratio for life insurance dropped to 4.8% in 2022 from 5.5% in 2021
- Risk life premiums were CHF 4.2 billion in 2022
- Pension buy-ins increased by 12% to CHF 3.8 billion in 2022
- Whole life insurance policies held steady at 1.1 million in 2022
- Investment return on life technical provisions was 2.1% in 2022
- Guaranteed interest rate for new life business averaged 0.9% in 2022
- Death claims in life insurance totaled 45,000 cases in 2022
- Annuity payouts from life insurers were CHF 7.2 billion in 2022
- Digital life insurance sales rose to 28% of new contracts in 2022
- Embedded value for Swiss life insurers grew 6.2% to CHF 89 billion in 2022
- Profit margin in life insurance was 4.5% of premiums in 2022
- Policyholder dividends from life insurance reached CHF 2.9 billion in 2022
- Conversion rate from group to individual pensions was 22% in 2022
- Life insurance market share of top 5 players was 68% in 2022
- Disability income protection premiums were CHF 3.1 billion in 2022
- Critical illness coverage penetration reached 15% in 2022
Life Insurance Interpretation
While the Swiss are meticulously planning for a retirement that statistically begins at 83.2, their life insurance industry reveals a nation that is equally pragmatic in the present, with group policies funding collective futures, surrender rates falling as commitment grows, and even digital sales proving that securing one's legacy is now just a serious click away.
Market Overview
- In 2022, the Swiss insurance market generated total gross premiums of CHF 68.4 billion, marking a 2.8% year-on-year growth
- The Swiss insurance industry's total assets under management reached CHF 1.2 trillion as of end-2022
- Switzerland held a 12.3% global market share in reinsurance premiums in 2022, totaling USD 42.1 billion
- The penetration rate of insurance in Switzerland stood at 10.2% of GDP in 2022, above the European average of 7.8%
- Non-life insurance accounted for 38.5% of total Swiss premiums in 2022, while life insurance made up 61.5%
- The Swiss insurance sector employed 142,000 people in full-time equivalents as of 2022
- Direct insurance premiums grew by 4.1% in 2022 to CHF 55.2 billion, excluding health insurance
- Reinsurance premiums written by Swiss companies reached CHF 45.7 billion in 2022
- The combined ratio for Swiss non-life insurers improved to 94.2% in 2022 from 96.8% in 2021
- Life insurance technical reserves in Switzerland amounted to CHF 456 billion at year-end 2022
- The number of licensed insurance undertakings in Switzerland was 242 in 2022, including 54 reinsurers
- Swiss insurers' return on equity averaged 8.7% in 2022
- Digital insurance sales in Switzerland grew by 15.2% in 2022, representing 22% of new policies
- Climate-related claims in Swiss non-life insurance rose 18% to CHF 1.2 billion in 2022
- Solvency II coverage ratio for Swiss insurers averaged 220% in 2022
- The Swiss insurance market's CAGR from 2018-2022 was 3.4% for total premiums
- Foreign branches of insurers in Switzerland numbered 120 in 2022
- Pension fund assets managed by Swiss life insurers hit CHF 890 billion in 2022
- Insurtech startups in Switzerland reached 250 by end-2022
- Swiss insurers invested 65% of assets in bonds in 2022, yielding 1.8% average return
- Cyber insurance premiums in Switzerland grew 25% to CHF 450 million in 2022
- The market concentration ratio (top 5 insurers) was 52% of premiums in 2022
- Gross claims paid by Swiss insurers totaled CHF 48.9 billion in 2022
- Switzerland ranked 3rd globally in reinsurance capacity in 2022
- Insurance density in Switzerland was CHF 7,850 per capita in 2022
- M&A activity in Swiss insurance saw 12 deals valued at CHF 2.1 billion in 2022
- ESG integration in Swiss insurance portfolios reached 78% by 2022
- Pandemic-related life insurance claims peaked at CHF 1.5 billion in 2022
- Mobile insurance apps usage grew to 45% of policyholders in 2022
- Total equity capital of Swiss insurers was CHF 112 billion in 2022
Market Overview Interpretation
Despite weathering a sharp 18% rise in climate claims and pandemic payouts, the Swiss insurance industry remains a well-fortified, trillion-franc titan, prudently investing for the future while still finding room for a witty 25% growth in cyber premiums and a cheeky 15% bump in digital sales.
Non-Life Insurance
- In 2022, Swiss non-life insurance premiums amounted to CHF 26.3 billion, growing 4.2%
- Motor vehicle insurance held 32% share of non-life premiums at CHF 8.4 billion in 2022
- Property insurance premiums totaled CHF 7.1 billion in 2022, up 3.8%
- Accident insurance (non-mandatory) premiums were CHF 4.5 billion in 2022
- Liability insurance grew 5.1% to CHF 3.2 billion in 2022
- Non-life claims ratio was 65.3% in 2022
- Number of motor insurance claims reached 850,000 in 2022
- Average motor claim size was CHF 4,200 in 2022
- Fire and natural perils claims paid CHF 950 million in 2022
- Theft insurance claims numbered 45,000 cases costing CHF 280 million in 2022
- Household contents insurance penetration was 85% in 2022
- Commercial non-life premiums reached CHF 9.8 billion in 2022
- Loss ratio for property insurance was 58% in 2022
- Cyber risk claims in non-life surged 30% to CHF 120 million in 2022
- Travel insurance premiums dropped 2% to CHF 650 million post-COVID in 2022
- Construction insurance policies covered 120,000 projects valued at CHF 45 billion in 2022
- Expense ratio for non-life insurers was 28.5% in 2022
- D&O liability premiums grew 8% to CHF 450 million in 2022
- Pet insurance premiums reached CHF 180 million with 1.2 million policies in 2022
- Marine cargo insurance handled CHF 22 billion in goods value in 2022
- Non-life reinsurance ceded by Swiss direct insurers was CHF 6.2 billion in 2022
- Breakdown insurance claims totaled 120,000 for vehicles at CHF 650 million in 2022
- Glass insurance payouts were CHF 150 million for 250,000 claims in 2022
- Legal expenses insurance covered 2.5 million policies in 2022
- Non-life market share of top 5 was 55% in 2022
Non-Life Insurance Interpretation
While Swiss drivers and property owners diligently paid billions to safeguard their assets from fender benders to fires, the insurance industry itself proved to be a finely tuned engine, collecting over CHF 26 billion in premiums and paying out claims with a precision that would make a watchmaker proud.
Regulatory and Employment
- The Swiss insurance sector employed 142,000 FTEs in 2022, with 35% in administration
- FINMA supervised 242 insurance groups with 1,200 entities in 2022
- SST (Swiss Solvency Test) compliance was 98.5% for insurers in 2022
- Insurance intermediaries numbered 45,000 licensed in Switzerland in 2022
- Gender diversity in insurance executive roles reached 28% women in 2022
- Average salary in Swiss insurance was CHF 128,000 in 2022
- FINMA fines for insurance violations totaled CHF 15 million in 2022
- AML compliance training covered 95% of insurance workforce in 2022
- Insurance apprenticeship programs graduated 2,500 in 2022
- Supervisory review and evaluation process (SREP) conducted for 100% of large insurers in 2022
- Cybersecurity incidents reported by insurers: 1,200 in 2022
- Pension foundation employees totaled 18,000 FTEs in 2022
- Regulatory capital requirement under SST was CHF 65 billion sector-wide in 2022
- Insurtech regulatory sandboxes hosted 15 firms in 2022
- Employee turnover rate in insurance was 8.2% in 2022
- Data protection compliance audits passed by 92% of insurers in 2022
- Board independence requirement met by 88% of insurance boards in 2022
- Actuarial certifications issued: 5,200 in 2022
- Remote work adoption in insurance reached 55% in 2022
- ESG reporting mandatory for 75% of insurers under FINMA in 2022
- Complaints to ombudsman: 12,500 from insurance customers in 2022
- Diversity training programs for 80% of employees in 2022
- Insurance tax revenue to cantons was CHF 1.8 billion in 2022
- Cross-border worker regulations affected 15% of insurance staff in 2022
- AI ethics guidelines adopted by 65% of insurers in 2022
- Vocational training investment was CHF 450 million in 2022
- Supervisory costs recovered from insurers: CHF 120 million in 2022
Regulatory and Employment Interpretation
While Swiss insurers boast impressive solvency and training figures, their real balancing act involves managing a small army of intermediaries, a notable gender gap at the top, a constant barrage of cyber threats, and thousands of disgruntled customers—all while ensuring nearly everyone gets their anti-money laundering homework done.
Reinsurance
- In 2022, Swiss reinsurers wrote global gross premiums of USD 42.1 billion
- Property-catastrophe reinsurance capacity from Switzerland was USD 15.2 billion in 2023 renewals
- Swiss Re's gross premiums were CHF 20.5 billion in 2022
- Casualty reinsurance premiums from Swiss firms totaled USD 8.7 billion in 2022
- Reinsurers in Switzerland numbered 54 licensed entities in 2022
- Combined ratio for Swiss reinsurers was 95.1% in 2022
- Life reinsurance premiums accepted by Swiss companies were CHF 12.4 billion in 2022
- Swiss reinsurance market share globally was 12.3% in non-life in 2022
- Catastrophe bond issuance supported by Swiss reinsurers reached USD 12 billion in 2022
- Retrocession ceded by Swiss reinsurers was CHF 18.2 billion in 2022
- Solvency ratio for Swiss reinsurers averaged 250% under SST in 2022
- Pandemic reinsurance recoveries for Swiss firms were USD 2.1 billion in 2022
- Cyber reinsurance capacity from Switzerland was USD 4.5 billion in 2022
- Munich Re's Swiss branch wrote CHF 3.8 billion in premiums in 2022
- Alternative risk transfer via Swiss reinsurers grew 10% to USD 6.8 billion in 2022
- Reinsurance technical reserves held by Swiss firms were CHF 320 billion in 2022
- Profit after tax for Swiss reinsurers was CHF 4.2 billion in 2022
- Climate risk modeling employed by 95% of Swiss reinsurers in 2022
- ILS funds managed by Swiss reinsurers totaled USD 95 billion in 2022
- Non-proportional reinsurance treaties from Switzerland covered 40% of global market in 2022
- Swiss core reinsurance capital was CHF 85 billion in 2022
- Run-off reinsurance portfolios managed CHF 50 billion in 2022
- Digital reinsurance platforms adopted by 70% of Swiss reinsurers in 2022
- Aerospace reinsurance premiums from Swiss firms USD 1.2 billion in 2022
- Reinsurers' investment yield averaged 2.8% in 2022
- Top 10 Swiss reinsurers held 92% market share in 2022
Reinsurance Interpretation
The Swiss reinsurance industry, armed with a small army of highly capitalized experts, a fortress-like solvency ratio of 250%, and nearly a third of the world’s non-proportional coverage, acts as a remarkably profitable, tech-savvy, and slightly terrifying global backstop for everything from pandemics and hurricanes to cyberattacks and space travel.
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