BAK study shows the economic significance of reinsurers in Switzerland
Swiss reinsurers belong to one of the fastest-growing sectors within the industry. And they are all the more prominent due to their above-average productivity – one that exceeds that of the overall economy many times over. For Switzerland as a business location, reinsurers are important risk carriers, capital providers and taxpayers that make a significant contribution to service exports. This makes Switzerland one of the three largest reinsurance locations in the world.
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.
Switzerland is one of the three largest reinsurance locations in the world.
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.
Reinsurance is one of the most productive sectors of the Swiss economy.
Important export service
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 attractiveness of Switzerland as a reinsurance location must be preserved.