Federal Office of Private Insurance FOPI
Federal Office of Private Insurance FOPI
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FOPI News no. 16
FOPI News no. 16 of 19 August 2008 – SST Directive: second round of consultations underway
Progress in meeting the requirements of the Swiss Solvency Test (SST), as stipulated in the Insurance Supervision Act (ISA) and the Ordinance on Insurance Supervision (OIS), is proceeding well. Based on valuable inputs emerging from the first round of consultations opened at the beginning of May in 2008, the Federal Office of Private Insurance FOPI has fine-tuned the corresponding draft for SST Directive. The second round of consultations, which starts today, is targeted at all affected insurance companies and professional associations, as well as interested parties for the purpose of calling for final statements of opinion.
The consultations will continue until the end of September 2008. Any remarks or commentaries pertaining to the second draft of the Directive must be sent in writing to FOPI by the 30 September 2008.
Swiss Solvency Test (SST)
With the coming into force of the revised Insurance Supervision Act on 1 January 2006, the Swiss Solvency Test (SST), developed by FOPI, was introduced. This model makes it possible to determine the risk resilience of an insurance company. It is compatible with the principles of Solvency II, a similar project conducted by the EU.
With the coming into force of the revised Insurance Supervision Act, the SST became mandatory for large insurance concerns. For the remainder of companies subject to supervision by FOPI, the calculation of the SST has become mandatory as of 1.1.2008. Nonetheless, all insurance companies were granted a transition period with regard to economic solvency, i.e. coverage of target capital by risk-bearing capital, which needs only to be met as of 1.1.2011.
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