KVG solvency test Health insurers

The solvency test is used to assess whether health insurers have adequate financial reserves. It is completed at the beginning of each year and takes account of the risks to which an insurer will be exposed until the end of the year. The insurer is deemed to have passed the test if the available reserves exceed the specified minimum level.

The KVG solvency test is used to assess the risks to which health insurers are exposed and their capacity to bear these risks. Requirements for the minimum level of reserves are specified as follows: a health insurer must be able to meet its financial obligations at the end of the year even if it has suffered an exceptionally unfavourable year, defined as a year an insurer should expect to experience on average once in a hundred years. In other words, the KVG solvency test puts the probability of a disaster at 1 per cent. With the required reserves (minimum level), the health insurer should be able to withstand the average loss suffered in such an exceptional year.

Health insurers’ risks

The KVG solvency test is based on the Swiss Solvency Test (SST) used by the Financial Market Supervisory Authority (FINMA) to assess the capital strength of private insurers. Like the SST, it takes account of the following risks:

  • Market risk encompasses risks on the financial markets, for example the risk of falling share prices.
  • Credit risk involves the risk of a borrower defaulting on its debts.
  • The insurance risk concerns the risks of the insurance business. The KVG solvency test takes account of the special features of social health insurance. This includes risk compensation between health insurers, as the exact amount of levies and contributions is set retrospectively. Another risk has to do with the fact that policyholders can switch insurer each year. For the new insurer, it is not easy to estimate the costs arising from new policyholders.

The solvency test also involves evaluating scenarios describing special situations such as pandemics. The test looks at the impact of such scenarios on the health insurer’s performance.

Documents to be submitted and other tools

All health insurers must complete an Excel form once a year, in which their risks are determined and their available reserves outlined. The current template for the KVG solvency test is available for download in the beginning of February. The KVG solvency test form must be submitted together with the report by April 30. Also available for download are a report template, instructions, a technical annex and FAQs.

Solvency test results

The KVG solvency test results and various analytical charts are published in autumn.


Last modification 01.02.2023

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Federal Office of Public Health FOPH
Health and Accident Insurance Directorate
Premiums and Solvency Oversight Section
Schwarzenburgstrasse 157
3003 Bern
Tel. +41 58 462 21 11

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