Review of the Year 2011

January 2011

27.01.11 | First Private Sector Health Promotion Conference: The Swiss Insurance Association collaborated with Economiesuisse and the Swiss Employers’ Association to organise a conference on the topic “Health promotion: individual responsibility versus state welfare” (Prävention zwischen individueller Verantwortung und staatlicher Fürsorge) in Zurich. About 80 experts from insurance companies, major companies, health promotion and disease prevention organisations, trade associations and authorities attended the event. The tension between individual responsibility for health and state welfare provision was explored in pertinent and frank presentations and intensive general discussions.

28.01.11 | SIA Media Conference: The Swiss insurance industry looks back on a good year overall, despite challenging market conditions. Premium volume for group life insurance grew more strongly in 2010 than it had for many years. Non-life insurance also continued to rise and benefited from a favourable claims experience. The SIA expects good operating results generally.

February 2011

02.02.11 | The Federal Council commissioned the Federal Finance Administration to prepare its message on the complete revision of the Federal Act on Insurance Contracts (FAIC) (Versicherungsvertragsgesetz, VVG), including the draft bill. The Federal Council also reached basic policy decisions on six points that need revision. These all refer to the general part of the new FAIC, and they go three-quarters of the way to addressing the SIA’s concerns.

03.02.11 | The European Insurance and Occupational Pensions Authority (EIOPA) commenced operations in January 2011. The European Parliament confirmed the appointment of Gabriel Bernardino, chairman of EIOPA’s predecessor organisation CEIOPS, as the first chairperson of EIOPA.

March 2011

01.03.11 | In its judgment on the EU directive on the equal treatment of men and women in the access to and supply of goods and services, the European Court of Justice (ECJ) decided to make no exceptions to the rules banning differences in premiums for men and women in individual EU member states. The judgment declared the current derogation for insurance products to be invalid with effect from 21 December 2012. This landmark judgment has repercussions for the international business activities of the Swiss insurance industry in the EU, but it does not have any immediate impact on insurance operations within Switzerland.

01.03.11 | The Council of States, in its capacity as second chamber, referred the Federal Law on Accident Insurance back to the Federal Council. The Federal Council has been asked to reconsider the draft revision of the Law on Accident Insurance and limit it to the most essential clauses. The SIA supported the decision to refer it back.

14.03.11 | The Council of States rejected the motion “Strengthening Pillar 3a. Personal responsibility in retirement provision” (Stärkung der Säule 3a. Selbstverantwortung in der Altersvorsorge) proposed by the FDP-Liberal parliamentary group, by 21 votes to 8. The SIA agrees with this motion in principle.

14.03.11 | EIOPA published the findings of the QIS5 quantitative impact study. The insurance companies participating in the survey hold high levels of excess capital, although some calibrations require rechecking.

18.03.11 | In the final vote, parliament approved the 6th revision of the disability insurance scheme. The two changes that the insurance industry regarded as most important were decided in line with the SIA’s wishes: in art. 3b para. 2 of the Federal Act on Disability Insurance (Bundesgesetz über die Invalidenversicherung, IVG), health insurers are designated as competent to report cases for the purpose of early detection. The approval by the Council of States of the new para. 5 lit. a of the final provisions of the IVG can be regarded as a great success for social welfare – and also for the SIA. This provision means that it will not be possible to make disability insurance savings by simply passing the costs on to accident insurance.

April 2011

12.04.11 | As first chamber, the National Council approved the Federal Act on Prevention and Promotion of Health by 97 votes to 71, thus creating a legal basis for disease prevention and promotion of health at federal level. Overall, the SIA supports the version of the Prevention Act passed by the National Council.

May 2011

11.05.11 | In Switzerland almost half of all drivers are using incorrectly adjusted headrests in their vehicles. They are thus exposed to an unnecessary health risk, since poorly adjusted headrests increase the risk of injury in the event of a rear-end collision. Over the next three years, the latest injury prevention campaign Kopfstützen schützen (“Use your head – use a headrest”) aims to inform drivers about how to position their headrests correctly. The campagin’s main character called Joe Köpfchen (“Brainy Joe”) appears in films, on a new advisory website, in TV commercials, on posters and in online banners as part of the campaign.

June 2011

10.06.11 | The Federal Council approved the new implementing ordinances for the structural reforms passed by parliament in March 2010 relating to the regulation of occupational pension plans. The existing Ordinance on the Regulation and Registration of Pension Plans (Verordnung über die Beaufsichtigung und die Registrierung der Vorsorgeeinrichtungen, BVV1) is to be rescinded. It is being replaced by a new version of BVV1 entitled “Ordinance on the Regulation of Occupational Pension Plans” (Verordnung über die Aufsicht in der beruflichen Vorsorge). The Ordinance on Occupational Retirement, Survivors’ and Disability Pension Plans (Verordnung über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge, BVV2) is being partially amended. A new ordinance on investment foundations (Verordnung über die Anlagestiftungen, ASV) will also be introduced.

23.06.11 | At its Annual General Meeting in Zurich, the SIA elected Urs Berger as its new Chairman. His predecessor Erich Walser referred to the importance of trade associations collectively contributing to the political decision-making process – not only as a democratic right, but also as a corporate duty. Federal Councillor Eveline Widmer-Schlumpf delivered the guest lecture on the theme of financial policy in an international setting.

July 2011

15.07.11 | Three health insurers – Sanitas, Groupe Mutuel and Helsana – founded the Allianz der Schweizer Krankenversicherer (“Alliance of Swiss Health Insurers”). Under its Chairman, Heinz Locher, the Alliance aims to be a strong voice for a high-quality, efficient health care system with sensibly regulated competition. The new association was created in response to the disincentives caused by increasing regulation in recent years. Its relationship with Santésuisse, which also favours competition in the sector, has not yet been clarified.

September 2011

07.09.11 | The Federal Council approved the draft of the new Federal Act on Insurance Contracts (FAIC). The SIA considers that the regulatory framework, which is over one hundred years old, is flawed. It regrets that the Federal Council wants further to expand the pre-contractual information requirements imposed on insurance companies and also to introduce a fourteen-day right of withdrawal and the right to claim from the insurer directly.

13.09.11 | The parliamentary initiative “Returns on BVG assets. Achieving clarity” (Erträge aus den BVG-Vermögen. Klare Verhältnisse schaffen) was rejected by 110 votes to 52 in the National Council. This matter was thereby brought to an end.

27.09.11 | The Council of States emphatically rejected the third point of the motion “Group occupational pension provision. Mutual insurance” (Kollektive berufliche Vorsorge. Versicherung auf Gegenseitigkeit), by 21 votes to 8. The National Council had already rejected points 1 and 2 in March 2011. This matter was thereby brought to an end.

27.09.11 | The Council of States approved the motion on “Compulsory earthquake insurance” (Obligatorische Erdbebenversicherung) proposed by Jean-René Fournier. This motion requires the Federal Council to introduce comprehensive, compulsory earthquake insurance for the whole of Switzerland. The SIA welcomes this decision. The matter must now be debated by the National Council.

29.09.11 | The Council of States rejected the parliamentary initiative “Legal quote” by 25 votes to 11. Following this renewed rejection by the Council of States, the parliamentary initiative was dropped from the order paper. It is very gratifying that all three motions relating to the full insurance model have been decisively rejected by the two Councils.

30.09.11 | Parliament approved the Federal Act on Human Research (Human Research Act) in the final vote. The SIA regrets this decision, since the proposal gives the Federal Council the power to extend the limitation periods and also grants the right to make direct claims.

October 2011

01.10.11 | The International Association of Insurance Supervisors (IAIS) approved the complete revision of the Insurance Core Principles (ICP). The core principles for effective insurance supervision take into account the developments on the insurance markets and in supervision since 2003.

November 2011

02.11.11 | The Federal Council has lowered the minimum interest rate for occupational pension schemes to 1.5% for next year. This is a step in the right direction. Unfortunately, the Federal Council decided not to send a clear signal regarding the financial security of occupational pensions by setting the minimum interest rate at 1%.

December 2011

01.12.11 | Swiss private insurers regard the European Union's numerous regulatory plans with a certain degree of scepticism. At an international symposium run by the SIA, renowned specialists explored the most important regulatory developments in the EU and their potential impact on the Swiss insurance industry.

07.12.11 | The Competition Commission clarified the conditions under which the subsidiary of Gebäudeversicherung Bern will in future be able to offer insurance to the private sector. The clarification of the antitrust aspects followed demands from the Swiss insurance industry for equal conditions for all market participants.

13.12.11 | In the winter session, the Council of States again rejected the popular initiative on “Safe housing for the elderly” (Sicheres Wohnen im Alter) and decided not to support the Federal Council’s counter-proposal (“Federal act on the taxation of private residential property”). The differences of opinion between the two Councils with reference to the popular initiative still need to be settled.

• Review of the Year 2011 (<1MB)