Here’s why people don’t like insurance against pandemics

Businesses have conveyed to the Federal Council their opposition to annual premiums that are parafiscal in nature and useful only if they are compulsory for 600,000 companies

On 31 March 2021, the Federal Department of Finance (FDF) informed the Federal Council of the results of the clarifications carried out in connection with pandemic insurance.
The results concerned the work carried out with representatives of the insurance industry and the decision not to go ahead with the project, at least for the time being.
For the time being, there is a lack of broad support from the business community.

Projekt ‘Pandemieversicherung’ – Bericht der Arbeitsgruppe (german)

In 2020, under the leadership of the FDF, a working group consisting of representatives from various departments and the insurance industry drew up a draft for a pandemic insurance solution for companies.
The FDF then invited business representatives to comment on the project.
According to the proposal, the capital needed to compensate for future losses would be built up through premiums.

The State would assume a large share of the risks

The State would assume a very large share of the risks that would have to be covered by premiums in the long term.
In the event of a claim, companies would receive the compensation to which they are contractually entitled on condition that they pay an annual insurance premium.

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The amount of the premium would only be within reasonable limits if pandemic insurance were to become compulsory for all companies operating in Switzerland, estimated at around 600,000.
To date, companies have not clearly indicated that they want such insurance.

Need for a clear constitutional basis

In particular, they oppose its compulsory nature, whereby the premiums payable would amount to a parafiscal practice.
Moreover, compulsory insurance against pandemics would probably require a constitutional basis.
The FDF is therefore refraining from pursuing the project, but is maintaining an open dialogue with the insurance industry and is prepared to examine any alternative proposals.

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