Insurance Intermediaries and Compliance in 2024

Since 1 January 2024, new regulations have come into force in the Swiss insurance and insurance brokerage industry that have a significant impact on practice. The effective date of 1 July 2024 is of particular importance for foreign insurance intermediaries and independent insurance intermediaries in Switzerland. This article aims to highlight the most important aspects of the new regulations and provide practical recommendations for the affected intermediaries.

Foreign insurance intermediaries must open a branch in Switzerland by 1 July 2024

Foreign independent insurance intermediaries will be subject to a localisation requirement, according to which they must have a branch in Switzerland. This new obligation must be implemented by 1 July2024. The affected intermediaries should therefore plan and legally initiate the entry of a branch in the commercial register in good time.

Exception for large British insurance intermediaries

However, British insurance intermediaries who serve large corporate clients are exempt from the localisation requirement under the bilateral agreement between Switzerland and the United Kingdom on mutual recognition in the field of financial services signed on 21 December 2023. However, the agreement must still be approved by the parliaments of both countries before it can enter into force.

Simplifications for tied insurance intermediaries in Switzerland

With the revision of the Insurance Supervision Act (ISA), which comes into force on 1 January 2024, the distinction between tied and non-tied insurance intermediaries will become more important. With the revision, tied insurance intermediaries will no longer be subject to direct supervision by FINMA. Tied insurance intermediaries are supervised by the respective insurance company and can no longer be entered in FINMA's register of intermediaries.

Additional documentation requirements for independent insurance intermediaries

The requirements for the entry of independent insurance intermediaries in FINMA's register of intermediaries have been expanded. Unbound intermediaries who are already registered must now also comply with the new requirements by means of subsequent documentation by 30 June 2024. This includes internal directives on the process structure, clear guidelines on tasks, documentation and authorisation regulations. Minimum standards will be introduced with regard to professional suitability, which are expected to be published in July 2024. The focus will be on the skills and knowledge of intermediaries. The clarification of the standards, for which the second industry consultation was launched on 8 January 2024, will also have a direct impact on the respective training and further education courses and recognised certifications in the insurance sector. Intermediaries can find out more on this page. For insurance intermediaries who are already registered, there is a transitional period until 31 December 2025 with regard to the training and further education obligation. In addition, there are detailed information and clarification obligations towards customers regarding further training and, if applicable, possible intermediary remuneration.

We will be happy to support you in reviewing all the necessary steps and in fulfilling the future requirements.