Swiss health insurance company Klug has announced bankruptcy and will cease operations at the end of the year. The company, with a 107-year history and around 9,300 insured members.
According to the official statement, at the end of July Klug submitted an application to the Federal Office of Public Health (BAG) for bankruptcy and license revocation, which will take effect on January 1, 2026.
On August 6, the Federal Labor Court confirmed this decision, allowing the company access to its related assets.
Following the discovery of unrecorded payments amounting to approximately CHF 2.4 million, the situation, according to the BAG, “unexpectedly and significantly worsened.” The agency is now investigating whether these circumstances have criminal implications.
The company cited the sharp increase in the number of insured members in 2022–2023 as the main cause of its financial difficulties. This was further aggravated by “discrepancies in financially significant information.”
“The CEO did not pass all the available information to the board in a timely manner,” said Klug spokesperson Werner Schaeppi.
As a result, the CEO was removed from operational management. However, Schaeppi noted in an SRF interview that it is not yet possible to determine whether this was the direct cause of the insolvency.
Policyholders will remain with Klug until the end of the year. “Klug will provide its services until the end of the year,” Schaeppi confirmed.
From 2026, clients will have to switch to another health insurance provider. In the autumn, they will receive an offer from Helsana but may freely choose a different insurer. Supplemental insurance policies will remain valid according to the terms of the respective providers.
The company, which employs 19 people, stated that its financial troubles were mainly caused by the sharp increase in insured members and “discrepancies in financially significant information,” leading to the CEO’s removal from operational control.
What is known about KLuG Krankenversicherung’s bankruptcy
- The Federal Office of Public Health (BAG) declared the company insolvent and revoked its license to provide health insurance as of December 31, 2025. The company will cease operations at the end of 2025.
- At the end of July, KLuG applied to the BAG for bankruptcy and license revocation. On August 6, the agency confirmed this request, enabling the company to access its frozen assets.
- The company had been under increased supervision by the BAG for the past two years. The situation deteriorated sharply after the discovery of unrecorded payments totaling approximately CHF 2.4 million, prompting authorities to consider potential criminal proceedings.
- KLuG attributes its financial difficulties to a sharp growth in the number of insured members in 2022–2023 and “discrepancies in financially significant information.” As a result, the CEO was removed from operational management.
What awaits the insured?
Around 9,300 people will remain insured until the end of 2025. Starting in 2026, they will be offered to switch to another insurer — for example, Helsana (without obligation, but with automatic transfer if no alternative is chosen).
If a health insurer goes bankrupt, the insolvency fund covers the cost of insured services. The fund was activated immediately to avoid payment delays. Initially, payouts will come from Klug’s restricted (frozen) assets, and then from the fund until responsibility is transferred to a new insurer.
