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The Federal Office of Public Health (FOPH) has withdrawn the health insurance company's license.
KEYSTONE
Zug-based health insurer Klug is insolvent and will cease operations at the end of 2025 after more than a century. The reasons are financial problems and internal disagreements.
Zug-based health insurer Klug is insolvent. The 107-year-old company announced on Tuesday that it would cease its insurance activities at the end of the year.
According to the press release, Klug applied to the Federal Office of Public Health at the end of July for a declaration of insolvency and the withdrawal of its license as of 1 January 2026. On August 6, the FOPH confirmed the declaration of insolvency, Klug announced. This means she can access her tied assets.
Klug has been in financial difficulties for some time and has therefore been under increased supervision by the FOPH for two years, the Federal Office of Public Health announced in its press release on Tuesday. Following the discovery of unaccounted benefits amounting to around CHF 2.4 million, the situation has "deteriorated unexpectedly and significantly", according to the FOPH. It is now investigating whether the events are relevant under criminal law.
Klug cited strong growth in the number of insured persons as the reason for the financial problems. This was exacerbated by "discrepancies in financially relevant information". According to the press release, the managing director was therefore removed from operational management.
The policyholders will remain insured with Klug until the end of the year, according to the statement. From 2026, they will have to switch to another health insurance company. They will receive an offer from Helsana in the fall, but will be free to choose another insurer, as Klug announced. Supplementary insurance will continue to be covered by the respective providers.
If a health insurance company becomes insolvent, the insolvency fund will cover the costs of the insured benefits. The fund was activated immediately in order to prevent payment defaults, the BAG announced. Initially, Klug will pay from the insurance company's tied assets, then the fund will pay until a new insurer is responsible,
According to its own information, Klug has 9,300 policyholders and 19 employees. According to the company, the insurance company wants to offer the "best possible solutions" for its employees, most of whom work part-time.
The FOPH supervises health insurance companies that operate in the field of social health insurance. According to the Federal Office, a declaration of insolvency is very rare. The last such case was in 2009.
