1. What is the current legal landscape for Insurance & Reinsurance in your jurisdiction?

Swiss Insurance Supervision Laws were revised per January 1, 2024 and the Swiss regulator FINMA since then has published a number of new circular letters and guidance to implement the new law. While the new law has a risk based, modern  approach, it considerably tightens  the rules for insurance intermediation in and from Switzerland.

2. What three essential pieces of advice would you give to clients involved in Insurance & Reinsurance matters?

Use the new opportunities which the revised Swiss supervision law presents, in particular  concerning on-line distribution, Insurtech, Embedded Insurance Products, Bankassurance.

The insurers and banks should be aware of enhanced flexibility with respect to investments made by insurers, in particular with their tied assets.

Be aware that the new insurance intermediation rules require insurers and intermediaries to clearly define their cooperation and to adjust websites and documentation accordingly.

3. What are the greatest threats and opportunities in Insurance & Reinsurance law in the next 12 months?

Insurers profit since 2024 from a new risk based supervisory regime which allows to focus on specific groups of (professional) insureds and to profit from a less strict supervisory regime. Also, the revised investment guidelines provide more flexibility concerning investments by insurers.

New Rules on so called qualified life insurance have to be implemented by life insurers and intermediaries. Legal developments concerning disclosure and waiver obligations for  commission, retrocession and similar payments need to be monitored. Some intermediaries need to reposition themselves and rebuild their relations with insurers.

In view of the revised rules on insurance intermediaries, there is some consolidation in the market of intermediaries, with new (sometimes foreign) intermediaries setting up branches or subsidiaries in Switzerland, and incumbent intermediaries transferring their business to new players.

4. How do you ensure high client satisfaction levels are maintained by your practice?

We regularly speak and publish in our fields of expertise, organize client seminars and ensure that clients are made aware of new developments. In particular, we use our international network to conduct multijurisdictional surveys, provide expert opinions and to recognize trends and developments which in due course will become a topic in Switzerland.

5. What technological advancements are reshaping Insurance & Reinsurance law and how can clients benefit from them?

Big data and AI are increasingly used by insurers to assess risks, to design customer focused products, to detect attempts of fraud, etc. At the same time, digital distribution of products with online and other electronic tools or via digital brokers are reshaping distribution channels. Life insurance intermediaries invest in  electronic tools to adjust to a level playing field with banks and asset managers.