FINMA has established that Supra Assurances SA, which operates under the umbrella of Divesa SA and is active in supplementary health insurance, is over-indebted. FINMA is therefore initiating bankruptcy proceedings. A review conducted by FINMA under supervisory law revealed a deficit of more than CHF 500 million in Supra Assurances SA's provisions. In order to protect the more than 70'000 policyholders who have taken out supplementary health insurance with Supra Assurances SA, FINMA has ordered the integration of all of Supra Assurances SA's policyholders into Assura SA, which also belongs to Divesa SA. At the same time, FINMA is placing Divesa SA, Assura SA and the service company, Figeas SA, under FINMA group supervision. Moreover, FINMA has suspended the boards of directors of the three companies and appointed an agent with executive authority. These measures threaten neither Assura SA's operational activities nor its financial stability.
Since FINMA had been engaged in intensive supervisory dialogue for a considerable period of time with Supra Assurances SA in particular, it conducted a comprehensive on-site audit of the entire Divesa Group in June 2012. The two supplementary health insurers, notably Supra Assurances SA and Assura SA, and other companies active in the compulsory health insurance business, which is not subject to FINMA supervision, belong to this Group. FINMA found evidence of serious shortcomings within the Group with respect to supervisory law in corporate governance, risk management, compliance and controlling. In August 2012, FINMA appointed an independent investigator who was specifically commissioned to further evaluate and examine the Group's liabilities in depth. His final report confirms serious deficiencies and concludes that Supra Assurances SA is over-indebted. While Supra Assurances SA is able to cover its running costs, the provisions required to pay future benefits have not been formed appropriately.
FINMA has appointed an agent with executive authority
The aforementioned shortcomings and over-indebtedness prompted FINMA to intervene immediately. FINMA therefore ordered the transfer of all of Supra Assurances SA's policyholders to Assura SA and has opened bankruptcy proceedings over Supra Assurances SA. Moreover, FINMA has placed the entire Divesa Group under group supervision and has designated Wolfgang Wandhoven as an agent with executive authority. At the same time, FINMA has suspended Divesa SA's CEO and all the former members of the boards of directors of Divesa SA, Assura SA and Figeas SA Those companies that provide compulsory health insurance are not affected by these measures.
Wolfgang Wandhoven, the investigator appointed by FINMA, has been mandated to safeguard the Group's business operations in the interests of policyholders and set up new management bodies. His mandate is not time-restricted and will only end once the new executive bodies can guarantee sound corporate conditions. FINMA's ruling will have direct effect.
What does this mean for policyholders?
Transferring all of Supra Assurances SA's policyholders to Assura means that no policyholders will lose their insurance coverage. Policyholders will be migrated to Assura SA products which, as far as possible, offer the same services as they enjoyed under their old policy. In order to be accepted as a new customer by Assura SA, it will not be necessary to submit the health declaration form that is usually required when taking out a new supplementary health insurance policy.
The modalities for products with an entry age guarantee must be adjusted, and premiums which reflect the policyholder's actual age must be levied. This is part of the restructuring measures and will lead to higher premiums for many policyholders. When implementing the restructuring plan, efforts will be made to avoid premium increases of this kind. Policyholders will be informed about the premium adjustments and possible future premium trends in order to provide them with an overview of the expected financial burden. As a result of the transfer of policies to Assura SA, Supra Assurances SA policyholders will be given the right to terminate their contracts unilaterally.
The measures taken by FINMA do not have any influence on the policies and services provided by Assura SA to its policyholders. Assura SA's solvency was and is not threatened.
Tobias Lux, Spokesperson, tel. +41 (0)31 327 91 71, email@example.com