Insurers will always be able to finance their advertising with your premiums

While premiums are on the rise, a parliamentary initiative denounced “the advertising hype” deployed by health funds. But the text was rejected by the National Council.

The health funds responsible for basic insurance will still be able to finance their advertising with money from policyholder premiums. The National buried on Tuesday, by 122 votes to 71, a parliamentary initiative from former deputy Baptiste Hurni (PS/NE), who became senator.

In his text, the Neuchâtel resident underlines that citizens, without knowing it, see their bonuses being invested in spots, advertising panels and messages on large screens. However, the added value for basic insurance is non-existent, since the latter is compulsory and insurers cannot make a profit.

Furthermore, the messages broadcast do not contain any element related to prevention in the field of public health. Hurni notes “with dismay the advertising hype” deployed by health insurance companies with the aim of increasing their number of insured people, even as health premiums are increasing.

Policyholders do not have to bear this unnecessary expense, supported Brigitte Crottaz (PS/VD). In addition, a ban on advertising would lead to a welcome drop in premiums. In 2023, advertising spending amounted to 80 million francs, a sum that would be better invested in prevention measures, she added.

Advertising needed

Advertising represents a legitimate and necessary instrument, countered Benjamin Roduit (Center/VS) for the commission. Advertising communication makes competition and innovation possible, while allowing insurers to differentiate themselves from each other.

Without this advertising, for example, they would not be able to draw attention to the different products and alternative models of health insurance that they offer, he continued.

Furthermore, since most insurers are also active in the field of supplementary insurance, it would be difficult to make a concrete distinction between advertising for these and for basic insurance, added Kris Vietze (PLR/TG) , also for the commission.

Finally, advertising only represents a marginal proportion of the volume of premiums, according to Roduit. Removing these promotional costs would therefore not allow substantial savings to be made.

The advertising ban would have only concerned compulsory insurance. Insurers could have continued to promote their products in the field of supplementary insurance. (ats)

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