Suva is solidly on track

Suva reports a positive operating result of CHF 57.5 million for 2019. Premiums proved to be in line with risks, as in previous years. All insurance lines are financially in balance. Needs-based provisions exist for all future benefits from all accidents and occupational diseases that have already occurred. In fiscal year 2019, Suva achieved an above-average investment performance of 9.3 percent on investments. As of the end of the year, fixed assets increased from CHF 50 billion to CHF 54 billion. The statutory funding requirement was thus exceeded.

As of the beginning of 2020, the technical interest rate fell to 1.5 percent following a decision by the Federal Department of Home Affairs. The resulting costs were already pre-financed in 2018, so that no increase in premiums will result. However, in view of the continuing extremely low interest rates and the foreseeable economic consequences of the coronavirus pandemic, a further reduction in the technical interest rate appears very likely. Suva has taken advantage of the good investment result in 2019 and set aside a provision of CHF 2.2 billion to finance this reduction as well without burdening premium payers. The remaining funds were used to strengthen the provisions for investment risks, resulting in an increase in the solvency ratio to 171 percent. This strengthens Suva's ability to meet all its obligations to policyholders at all times.

In 2019, premium payers were able to benefit from an extraordinary refund of surplus investment income amounting to 532 million francs. In occupational accident insurance, a further refund in the form of lower premiums amounting to around CHF 180 million will take place in 2020. Unfortunately, the tight situation on the capital markets will not allow any further extraordinary premium reductions in the coming years. Although net premiums will remain stable in 2021, gross premiums billed in occupational accident insurance will therefore rise again to the 2018 level for many insured companies, while they will remain unchanged on average in non-occupational accident insurance.

Measures due to the coronavirus pandemic

Due to the high economic burden placed on the insured companies by the Coronavirus pandemicSuva relieves them of as much administrative and financial burden as possible. Payment deadlines have been extended until at least the end of June and no reminders or debt collection letters will be sent until further notice. As a landlord, Suva is relieving those customers who were directly affected by a closure of operations during the coronavirus lockdown with at least one month's rent; individual solutions are being sought for tenants who were indirectly affected. The number of occupational accidents has decreased significantly as a result of the lockdown. It is therefore planned to adjust the premiums for occupational accident insurance in line with the reduced risk. Suva is currently examining, together with the Swiss Insurance Association (SIA) and the other accident insurers, how best to implement this planned premium adjustment in occupational accident insurance.

With the farm inspections transferred by the federal government under the Ordinance on the Control of Coronavirus on Construction sites as well as in industry and commerce, Suva makes an active contribution to combating the spread of the coronavirus. In close cooperation with the companies, we look for solutions and support them in implementing the protective measures of the federal government. Suva operates a hotline for employees in the construction, trade and industry sectors to answer questions about protecting employees from the coronavirus.

Felix Weber, Chief Executive Officer, comments: "With a positive operating result in 2019, solid reserves and own funds, we are well positioned for the financial stress caused by the coronavirus pandemic. We are aware that due to the coronavirus-related drop in sales, some of our insured operations are struggling to survive. We are therefore doing everything we can to provide them with as much administrative and financial relief as possible."

Overall inconspicuous development of accident figures in 2019

In fiscal year 2019, Suva received 479,746 Accidents and occupational diseases were reported (+ 0.9 percent). The duration of daily allowance payments increased slightly to 40.8 days (previous year 40.6 days). The rising number of cases with daily allowances (+ 2.7 percent) had an impact on daily allowance costs, which increased to CHF 1.492 billion (+ 3.5 percent).

The number of occupational accidents rose by 1.3 percent, in line with the increase in the number of employees according to the Federal Statistical Office (FSO). The number of leisure accidents increased by 0.9 percent. In terms of insured persons, this means a slight decrease in leisure accidents compared to the previous year with the exceptionally sunny summer. The number of accidents among persons registered as unemployed decreased again (- 5.8 percent). This is due to the good labor market situation in 2019 with the falling unemployment figures.

The measures ordered by the Federal Council to combat the coronavirus also had an impact on the current development of accident figures. During the lockdown period from March 16 to May 10, 2020, 34 percent fewer accidents were reported to Suva than in the previous year. The extent to which the decline in accident figures will affect the annual figures depends on the duration and intensity of the coronavirus measures. The decrease in reported accidents by May 10, 2020, represents about 5 percent of the accidents typically reported in a full year.

Text: Suva

More information:

• Video and images of the Annual Media Conference: www.pr.keystone-sda.ch
• Go to Presentation  the Annual Media Conference
• At Annual Report  the details can be seen for the fiscal year 2019
• Go to Factsheet Compensation Reserves