Insurance

Insurance Supervision Act: a modern framework for insured persons …

Swiss Insurance Association ASA

Zürich (ots)

The Swiss Insurance Association ASA welcomes the partial revision of the law on insurance supervision LSA approved by Parliament. The revised law sets important milestones for the Swiss insurance market. It promotes the sector’s competitiveness and innovative strength and strengthens consumer protection in a targeted manner.

In the final vote on March 18, 2022, Parliament adopted the partial revision of the Insurance Supervision Act (LSA). The Swiss Insurance Association ASA welcomes the overall result. It considers that this balanced reform constitutes an important step forward for both insured persons and insurers. “The LSA plays a major role, because it helps to boost the capacity for innovation of Swiss private insurers. The modernity of these legal provisions is also to the benefit of the customers of our member companies. The increased regulatory requirements in in the initial and further training of insurance professionals guarantee a high level of quality, even in international comparison”, says the director of the sector association, Urs Arbter.

Modernization of the supervisory framework

The first major revision of the LSA since 2006 provides a sustainable and competitive framework for the exercise of private insurance in Switzerland. The revision includes targeted relief from supervision for reinsurers and insurers of professional clients while promoting innovation through exemptions from supervision for very small structures (sandbox model). In addition, this revision of the legal provisions improves legal certainty by the formal inclusion of the Swiss Solvency Test (SST) in the law as well as the introduction of the right to reorganization. The SST identifies the economic risks incurred by insurance companies. “The revision of the law strengthens the Swiss insurance market and, by extension, the Swiss financial market”, adds Urs Arbter.

High quality of advice

Insurance intermediaries are often the first contacts for customers – here again, the revision has laid an important foundation stone: from now on, all insurance intermediaries are subject to an initial and continuous training obligation , and the rules of conduct to which they are subject have been modernized. Furthermore, the law now includes a clear definition of their activities and clearly distinguishes the activity of tied intermediaries from that of unrelated intermediaries. This reinforces the quality of the advice and, consequently, confidence in the insurance sector and its many players.

Note for writing

The Swiss Insurance Association ASA represents the interests of the private insurance sector nationally and internationally. Its members include around 70 direct insurers and reinsurers who employ around 47,000 employees in Switzerland. ASA member companies generate approximately 85 percent of all insurance premiums generated in the Swiss market. The insurance sector and therefore the SIA are therefore major players in Switzerland as a business location. This is the reason why private insurers are committed to the prosperous and sustainable development of this place on an economic, social and political level and thus assume a responsibility towards the national economy.

Contact with the media

Swiss Insurance Association ASA
Lisa Schaller, press officer
Telephone: +41 44 208 28 56
email: lisa.schaller@svv.ch
Telephone of the operational center: +41 44 208 28 28

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