Dispatch on the Partial Amendment of the Insurance Supervision Act Adopted
On October 21, 2020, the Swiss Federal Council adopted the dispatch on the partial amendment of the Swiss Federal Insurance Supervision Act (ISA). The ISA regulates the supervision of insurance undertakings and insurance intermediaries.
The amendment makes adjustments to the ISA to reflect altered circumstances and market developments in the insurance industry. The amendment further aims to implement proposals, which arose in connection with the parliamentary deliberations on the Swiss Federal Financial Services Act (FinSA), and to strengthen the protections of insured persons. Finally, the amendment intends to promote the competitive position of the Swiss insurance sector by establishing a more nuanced regulatory and supervisory system.
Other key changes are:
- The introduction of rules on the restructuring of insurance undertakings;
- The creation of customer categories by establishing a regulatory and supervisory approach based on varied customer protection needs;
- The modernization of the rules regarding insurance intermediaries; and
- The distribution of insurancebased investment products may require insurance intermediaries to comply with additional conduct and information duties in the future, similar to the duties already applicable to financial services providers under the FinSA; additionally, the amendment seeks to strengthen customer protections by introducing requirements regarding the prevention of conflicts of interest and disclosure of compensation for insurance intermediaries.
In addition to the above, changes contemplated in the amendment include the strengthening of the prudential oversight regarding insurance groups and the creation of a stronger legal basis with respect to the Swiss Solvency Test.
For further information, please refer to the press release issued by the Swiss Federal Council as well as to the statement submitted by Homburger AG with regard to the Consultation Draft for the Partial Amendment of the Insurance Supervision Act (ISA) dated as of November 14, 2018 (only available in German):
Begleitschreiben Stellungnahme Vernehmlassungsvorlage VAG
Detaillierte Kommentierung Vernehmlassungsvorlage VAG
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This Bulletin expresses general views of the authors as of the date of this Bulletin, without considering any particular fact pattern or circumstances. It does not constitute legal advice. Any liability for the accuracy, correctness, completeness or fairness of the contents of this Bulletin is explicitly excluded.