The period for switching health insurers is in full swing, and unsolicited marketing calls are still part and parcel of it. Cold calling in the area of health insurance has been banned for all insurance intermediaries and insurance companies by law since 1 September 2024. FINMA has launched investigations of four insurance and intermediary firms.
The Federal Council approved the Ordinance on the Regulation of Insurance Intermediation on 14 August 2024. The legislation makes various provisions of the industry agreement on intermediaries between the health insurers’ trade bodies Santésuisse and Curafutura (BVV 3.0) binding for all insurance intermediaries with effect from 1 September 2024, including the ban on cold calling.
Sanctioning powers for FINMA in supplementary health insurance
FINMA has been given additional responsibilities under the new regulations. It is responsible for sanctioning breaches of the ban on cold calling in private supplementary health insurance. However, the Federal Office of Public Health (FOPH) remains responsible in the area of basic insurance (compulsory health and long-term care insurance).
Since September 2024 breaches of the ban on cold calling can be reported on FINMA’s website. The public has made active use of this facility. In a little over two months FINMA has already received over 100 reports of breaches of the rules.
Four investigations launched
FINMA analyses the reports it receives in a structured manner. Where it suspects a breach of the new regulations, it investigates in greater depth. Since 1 September 2024 FINMA has launched investigations of four insurance and intermediary firms. The aim is to close down any misconduct immediately. FINMA can demand that companies in breach of the rules make organisational changes or can withdraw their licence. Breaches of the health insurers’ industry agreement are also referred to the criminal prosecuting authorities.
In addition, FINMA has been informed that some market participants are attempting to circumvent the ban on cold calling by using other communication channels. Where it is within its powers, FINMA also takes a closer look at any attempts to circumvent the ban.
Prevention to protect insurance clients
FINMA sees protecting citizens and the proper functioning of the financial markets as its core function. It is therefore increasingly active in prevention. A video explains the information that potential clients need to pay attention to when receiving advice from an insurance intermediary. “It is important for insurance customers to understand their rights and insist on being given the information required by law”, says Markus Geissbühler, head of FINMA’s Digital Supervision of Insurance Companies and Intermediaries section. When advice is being given by telephone, it is mandatory for the adviser’s identity to be known to the client. The firm and insurance companies the adviser is working for must also be clearly disclosed. A written confirmation of the main points discussed in the call can also be helpful to prevent any possible malpractice when the contract is signed.
Further information on the protection of insurance clients is available on FINMA’s website.
