What happens if my health insurer goes bankrupt?

Your basic health insurance is protected

Like any company, a health insurer can get into financial difficulty. For basic health insurance, the law has built a safety net with several levels: reserves, supervision by the FOPH, tied assets and, finally, the insolvency fund of the Common Institution under the Federal Health Insurance Act (Gemeinsame Einrichtung KVG). This foundation of the insurers covers the costs of the statutory benefits in place of insolvent insurers (Art. 18 para. 2 KVG).

In short: your treatment under basic health insurance continues to be paid for, even if your insurer can no longer pay. However, you must look for a new insurer as soon as the old one loses its authorisation.

Step by step: if your insurer is in difficulty

1. Read the letter from your insurer or the FOPH. In the KLuG case, the insurer informed the insured persons individually; the FOPH publishes its measures on its website. They state from when your contract ends and by when you can choose.
2. Submit invoices as usual. In the KLuG case, the FOPH expressly stated that invoices should still go to the previous insurer and that the processing of benefits would continue. Keep copies and reimbursement claim forms.
3. Choose a new insurer. Compare premiums in the premium calculator and register with the new insurer. It must accept you and notifies the old insurer that you are insured without interruption (Art. 7 para. 5 KVG).
4. Observe the deadline. If you do not choose yourself, the FOPH can transfer your portfolio to another insurer if that insurer agrees (Art. 40 KVAG), as in the KLuG case. If you end up not being insured at all, the responsible cantonal office assigns you to an insurer (Art. 6 para. 2 KVG).
5. Check supplementary insurance separately. Ask which company your supplementary insurance is with. This can be another company in the group or a different insurer. In the KLuG case, according to the FOPH, the supplementary insurance policies that the insurer had brokered for other insurers continued with those insurers.

You will find a sample letter and deadlines for a regular switch under Switching health insurer.

The rules in detail: from warning signs to the insolvency fund

Reserves and solvency test. Every insurer must build up sufficient reserves (Art. 14 KVAG) and be able to meet its financial obligations at all times (Art. 5 let. d KVAG). How high the reserves must be at least is recalculated every year by the KVG solvency test; 100 % is the minimum. In addition, every insurer must secure the claims of insured persons with tied assets that may only be used for that purpose (Art. 15 KVAG).

Protective measures. If the interests of insured persons are at risk, the FOPH intervenes as the supervisory authority under the KVAG (Art. 38 KVAG). Among other things, it can order premium increases or a financing or recovery plan, freeze assets, dismiss the management, appoint an agent or, with another insurer’s consent, transfer the insured portfolio to that insurer (Art. 38–40 KVAG).

Insolvency. An insurer is insolvent if bankruptcy proceedings have been opened against it or if it will no longer be able to meet its financial obligations in the foreseeable future. The FOPH formally determines the insolvency and sets the date from which the insolvency fund must pay benefits (Art. 50 KVAG). Bankruptcy itself requires the FOPH’s consent, which it only gives if no recovery is possible (Art. 41 KVAG).

Insolvency fund. The Common Institution manages the fund (Art. 47 KVAG). It is financed, among other things, by contributions from the insurers (Art. 48 KVAG); the board of trustees sets its size so that the risks are fully covered (Art. 68 KVAV). The fund covers the amount the insurer lacks for the statutory benefits: benefits of basic health insurance, of voluntary daily allowance insurance under the KVG, the risk levies and the related administrative costs (Art. 51 KVAG). It can take recourse against those responsible who are liable for the insolvency (Art. 52 KVAG). In the event of temporary liquidity shortages, the Federal Council can grant loans to the Common Institution (Art. 42 KVAG).

End of authorisation. If an insurer no longer meets the legal requirements, the FOPH withdraws its authorisation (Art. 43 KVAG). This ends your insurance relationship (Art. 7 para. 4 KVG).

Figures: how often does this happen?

The number of insurers has fallen sharply: in 1996, 145 insurers offered basic health insurance, and in 2025 only 37 (FOPH, Priminfo).

In the KVG solvency test as of 01.01.2025, all insurers together had reserves of CHF 7.8 billion against a minimum level of CHF 5.3 billion, a solvency ratio of 147 % (previous year 121 %). According to the FOPH, a single insurer was below the legal minimum requirements. The FOPH shows each insurer’s ratio on Priminfo; we include it in the health insurer profiles. It shows the position at the start of the year and is not a forecast.

The KLuG case in 2025

The FOPH described the most recent case to date in its press release of 12.08.2025:

Benefits remained covered during this period: the insurer first used its tied assets, and the insolvency fund stepped in on a subsidiary basis until a new insurer was responsible. We do not rate any insurer here; the table only reproduces the steps the FOPH has published.

Example: invoices during the winding-up

Example with fictitious people and assumed amounts. Jana, 45, is insured with an insurer whose insolvency the FOPH determines in August; the authorisation ends on 31 December. In September, she receives a doctor’s bill for CHF 480 (tiers garant: she pays the bill and claims reimbursement), and in October a physiotherapy bill for CHF 620. Her deductible is CHF 300, and she had no previous costs that year. Calculated with Art. 64 KVG and Art. 103 KVV.

Special cases

• Supplementary insurance: supplementary insurance policies are private contracts under the ICA, supervised by FINMA; the insolvency fund does not cover them. If such an insurer goes bankrupt, the contract expires four weeks after the public announcement of the opening of bankruptcy proceedings (Art. 37 para. 1 ICA). Claims of insured persons are covered first from the tied assets and take priority over ordinary creditors in bankruptcy (Art. 54a and 54abis ISA). You must apply for new supplementary insurance yourself; the new insurer may ask health questions. More on this under Health questions in the application.
• Premiums paid in advance: under Art. 51 KVAG, the insolvency fund covers benefits, risk levies and administrative costs; premium credits are not mentioned in this list. If you have paid in advance, ask the insurer or the liquidator how the amounts will be refunded. If you pay annually in advance, you will find the pros and cons under Paying the premium annually.
• Ongoing treatment: the benefits of basic health insurance are the same with every insurer. The new insurer reviews treatment approved by the old insurer according to the same legal rules; clarify cost approvals with it early. See Switching during treatment.
• Cost-saving model and deductible: with the new insurer, you choose your model and deductible again. The old insurer’s discounts and conditions do not apply there.
• Premium debts: outstanding premiums owed to the old insurer remain due. If the authorisation is withdrawn, the relationship ends by law, not through your notice of cancellation (Art. 7 para. 4 KVG).

Common mistakes

• Holding back invoices. Keep submitting invoices to your previous insurer unless the FOPH and the insurer say otherwise. Without a submitted invoice, neither the insurer nor the insolvency fund can reimburse anything.
• Letting the deadline pass. If you do not choose yourself, you end up with the insurer that takes over the portfolio or are assigned by the canton. That is not necessarily the cheapest for you.
• Forgetting supplementary insurance. It is not protected by the insolvency fund and, depending on the contract, either continues with another company or ends.
• Reading the solvency ratio as a guarantee. It shows the position at the start of the year. Your protection in basic health insurance is secured by the insolvency fund, not by the ratio.
• Switching insurer as a precaution out of fear. A switch is only possible on the legal dates. Compare the premium; for the benefits of basic health insurance, you are protected even in the event of insolvency.

Who earns money from my premium? explains how insurers handle your premiums and reserves; the article Reimbursement claim form explains how to submit documents correctly. You will find further basics in the Understanding basic insurance section, and the solvency and key figures of each insurer in the health insurer profiles.