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Does your company have optimal social benefit coverage?

The Corporate Benefits Statement, or CBS, consists of a detailed analysis of your company's overall situation regarding social insurance coverage. Thanks to this complete view of the coordination between the various insurance and pension provision actors, any shortcomings or over-insurance will be brought to light and can be corrected according to the advice of your expert broker.
 
Due to the quantity of work and the complex calculations it entails, the CBS is generally recommended for companies employing a staff of at least 200. This criterion is not a deciding factor and we remain at your disposal for all requests.
 

The components of the CBS

Benefits mapping
  • Analysis of each benefit paid as a single unit (death from accident/illness, disability from accident/illness)
  • Segmentation by salary brackets
Summary of your HR policy
  • Putting the salary replacement rates into perspective
Recommendations for optimisation
  • Identification of over-insurance or any insurance shortcomings
  • Recommendations for financing and benefits

The advantages of the Corporate Benefits Statement 

By highlighting over-insurance or shortcomings, the CBS identifies areas of improvement for financing and coverage levels. On the basis of the recommendations made by your broker, you will be able to reduce spending without decreasing benefits for your company's entire workforce.

You will also be able to exploit the summary of your HR policy that highlights your social advantages. This communication will provide you with the means to not only build loyalty with your staff, but also to attract new talent for your company.

The methodology of a CBS analysis

Our methodology comprises three stages:
  1. Identify and analyse existing coverage
  2. Calculate the benefits over the whole insured population
  3. Coordinate coverage
It is possible to customise the calculations at two levels: that of the company and that of the individual according to their age, family situation, gender or income. These complex calculations are performed by our teams of actuaries.
 
At the end, we can identify the overall level of coverage of the person insured according to a multitude of scenarios. When these results are applied to the entire workforce, the excesses and over-insurance can be defined rapidly, along with any gaps in coverage.

An approach that is unique in Switzerland

In Switzerland, the only official document providing those insured with information on their situation is the Pension Fund Certificate that is issued annually. The old age and survivors' insurance (AVS) and accident insurance do not follow the same system.
 
The CBS approach is considered to be global as it takes into consideration all the players in the pension fund and insurances sector. Swiss Risk & Care is the only broker to offer this approach in Switzerland, although this type of analysis has long existed abroad.
 
The question of coordination is rarely taken into consideration, while it could lead to substantial savings for corporations. There are two reasons for this:
  1. The various experts do not talk to each other; particularly the experts in occupational pension plans (LPP) and brokers. This prevents employers and employees from having a clear vision of their own social coverage. In Switzerland this problem is accentuated by the fact that pension plans and companies are entirely separate from a legal point of view. These two worlds have no communication between them. At Swiss Risk & Care we have a great advantage in the management of social insurance coverage as, for the last 30 years, we have combined the savoir-faire of the broker with that of the LPP expert (actuary).
  2. The rules of coordination are particularly complicated, due notably to the complexity of the calculations and the diversity of the possible scenarios. Swiss Risk & Care has developed an IT application that includes all the data of Swiss law, as well as the calculation of AVS, AI, accident insurance, Pillar 2 and supplementary insurances.
This comprehensive approach was the first realised with the Individual Social Report (ISR), a document that is clear, concise and summarizes the remuneration, pension provisions and benefits of each employee in your company.
 
 

The rules relating to Swiss social insurance coordination

Source: Swiss Risk & Care
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Examples of over-insurance and shortcomings

When disability is caused by an accident, the disability insurance (AI) is the first to pay benefits, followed by the compulsory accident insurance and, finally, the pension fund. In some cases, almost all the benefits are paid by the AI and the accident insurer. In general, disability following an accident is therefore largely covered by the Pillar 1 and by the compulsory accident insurance. The pension fund often remains inactive.

In this case, between the AI, the compulsory accident insurance, the supplementary accident insurance and the Pillar 2, the employer pays four contributions, while the employee will never receive more than 100% of their salary. Meaning that savings can be made by both the company and the employees.

It is not just in the case of accident insurance that savings are possible. Depending on what is foreseen under the pension fund's rules and regulations, it is also the case for disability due to illness. Naturally, one cannot earn more after becoming disabled than when working.

Thanks to the CBS, any shortcomings are also revealed: the consequences of an accident, for example, are over-insured, while it is the opposite in the case of illness. Certain categories of people, depending on their family situation or salary, have better coverage overall than others, etc. The employer can therefore correct what can be corrected in advance and this may be the way to ensure that each franc spent on social insurance is put to good use.

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