Swiss corporate insolvencies set to hit historic peak

The sharp rise is largely attributed to the new insolvency law implemented in 2025, which Jan Möllmann, CEO of Allianz Trade in Switzerland, describes as the primary driver behind the mechanical increase in proceedings. While the legislation creates a new baseline for business failures, broader economic factors—including sluggish growth, elevated energy costs, and persistent interest rates—continue to squeeze margins. Younger, less capitalized firms are proving particularly vulnerable as intense competition further thins the market.

This volatility extends far beyond Swiss borders, with Europe bearing the brunt of a global trend marked by five consecutive years of growth in business failures. Across 2026 and 2027, Allianz Trade estimates that 2.7 million jobs could be lost globally, with Europe accounting for 1.6 million of those positions. The construction, retail, and service sectors face the highest risk, as rising bank lending rates impose massive additional interest expenses across Western Europe.

Technological disruption is also playing a quiet but potent role. While artificial intelligence is not yet a primary cause of liquidation, it is accelerating structural shifts. In sectors with high AI adoption, such as information and communications, firms struggling to integrate new tools are finding themselves unable to keep pace with early adopters. This widening gap threatens to further destabilize companies in less diversified markets, where limited resources for digital transformation leave them increasingly exposed to competitive decline.