On 25 March 2015, the Federal Council decided to bring the partially revised Insurance Supervision Ordinance (ISO) into force on 1 July 2015. This will result in changes in the supervision of private insurance companies and of insurance groups and conglomerates.
Solvency, qualitative risk management and disclosure in particular will undergo substantial changes. Adjustments will also be made to technical provisions, tied assets and the supervision of intermediaries, and some branch-specific provisions.
Changes in FINMA practice
In line with the revised ordinance, FINMA will progressively develop and communicate its supervisory practice. While a number of FINMA circulars will be adjusted, new circulars will also be drafted up to 1 January 2017.
Current circulars will still remain valid until the revision, where applicable, is completed and insofar as they do not contradict the provisions set out in the revised ISO. In case of material inconsistencies, ambiguity or contradictions, the ISO provisions shall take precedence.
Any questions in this regard should be addressed promptly if possible to the responsible FINMA account manager.
