BAK study shows the eco­nom­ic sig­nif­i­cance of rein­sur­ers in Switzer­land

Reinsurers insure insurance companies. They relieve life, non-life and health insurers of a part of their claims burden, and thus play a crucial role in maintaining economic stability. In Switzerland, 45 reinsurance companies are subject to Finma oversight. These operate globally to ensure optimum diversification of their risk burden. The study ‘Volkswirtschaftliche Bedeutung der Rückversicherungen in der Schweiz’, by BAK Economics, shows Switzerland is one of the three largest reinsurance locations in the world, measured by net premiums, after the US and Germany.

Reinsurers stand out all the more thanks to their high productivity – one that exceeds that of the Swiss economy as a whole many times over. Reinsurers also emerge as above-average performers within the sector, generating more than 18 per cent of the industry's added value, despite having only 3 per cent of its jobs.

As risk carriers, investors and taxpayers, reinsurers are an important factor in the Swiss economy. Insurance services accounted for almost six per cent of all Swiss service exports in 2021; these were primarily reinsurance services.

To ensure Switzerland retains its attractiveness to reinsurance in the long term and thus continues to provide diverse economic benefits, the framework conditions have to be right, and must remain competitive compared with other locations. For reinsurers, access to open reinsurance markets worldwide is one of the most essential factors. Regulation appropriate to the business model and the availability of skilled personnel are some of the most important location factors. Thanks to the numerous specialists employed by reinsurance companies, Switzerland also benefits extensively from their risk knowledge and expertise in assessing and quantifying global risks. 

The full study can be downloaded in English and German.