Switzerland Insurance Information

CIA link to demographic/economic data on Switzerland

General Switzerland Insurance Information

• Compulsory Insurance:
  
  1. Workers’ Compensation (part of Social Security Scheme);
  2. Third Party Automobile Liability;
  3. Fire for buildings / contents in certain cantons;
  4. Pensions;
  5. Hunter’s Liability;
  6. Aircraft Liability;
  7. Nuclear Power Station Liability;
  8. Old Age and Survivors Insurance;
  9. Unemployment Insurance;
  10. Disability Insurance.
• Non-Admitted Insurance:
  Prohibited. Coverage can only be provided by local companies with the exception of War Risks and Cross-Border Motor insurance.
• Policy Wordings & Rates / Tariffs Controlled:
  Most tariffs are advisory only and serve as guidelines. Automobile, Liability and Workers’ Compensationrates are controlled. With the exception of certain Swiss wordings, most wordings must be approved by the Swiss insurance authorities.
• Policy Language:
  German, French, English.
• Types of Insurance Restricted to Government Institutions:
  Workers’ Compensation.
• Policy Currency:
  Swiss franc (CHF). U.S. $ insurance available.
• Currency Restrictions / Exchange Controls:
  None.
• Policy Period:
  Annual but 5 year contracts are common for private insurance. Long Term Agreements (LTAs) while available are not common.
• Cancellation Provisions:
  90 day written notice prior to expiration or mid-term after a loss.
• Premium Taxes, etc. paid by Insured:
  5% - Fire (Property); Crime;
  1.25% - General / Public Liability; Automobile Liability.
  
• Insurance Companies:
  Non-admitted Insurers are prohibited from writing business in Switzerland; however, EU Freedom of Services provisions apply because of a bilateral agreement.
• Brokers:
  Brokers are allowed to operate in Switzerland without a license; however, they are not allowed to act on behalf of a non-admitted (unlicensed) Insurer.
• Brokerage Commissions:
  Commissions: 10-20%. Commissions can be paid to foreign brokers not locally registered.
• Broker of Record Letters:
  Required.
• Reinsurance:
  No restrictions and no taxes known.
• Local Natural Hazards:
  High Water and Flood, Storm and Hail (vehicles).
• Other Information:
  Market pools exist for earthquake, nuclear, aviation, and ‘natural catastrophe’ risks.

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft, explosion, flood, storm / tempest, windstorm / hurricane, weight of snow / avalanche. Burst water pipe, riot / civil commotion, malicious damage, vehicle impact are available for an additional premium charge. Note: Swiss wording provides ‘Swiss Elemental Perils’ hail, landslide, flood, rockslide in addition to the preceding standard perils.
• All Risk:
  Available but not common other than for Contractors related risks.
• Coinsurance:
  No longer applicable in the Swiss market.
• Blanket Insurance:
  Not generally available except on stocks.
• Business Interruption:
  Most common form is Swiss though International forms can be negotiated.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Available up to a maximum of approximately 50%. Negotiable.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Machinery Breakdown, Business Interruption. Boiler Explosion can be written under the Fire (Property) policy. Inspections are not compulsory.

General / Public Liability

• Available Wordings:
  General / Public Liability including Product Liability, Contingent Automobile Liability. Product Recall coverage is available.
• Comments:
  Coverage can be written on an occurrence basis. Employer’s Liability can be included as coverage extension to the General / Public Liability policy.

Automobile / Motor

• Compulsory Limits:
  Sfr3 million for bodily injury and property damage per accident (automobiles); higher (Sfr6 million) for commercial vehicles.
• Comments:
  Higher limits are readily available in the market and are usually purchased.

Workers’ Compensation

• Comments:
  This compulsory insurance provides for statutory minimum limits but private coverage can be arranged on an excess basis.

Marine

• Available Wordings:
  Locally adapted wording based on the Institute of London Underwriters clauses. War Risk rates follow London scale. Third Party Liability coverage for yachts is compulsory.

Crime

• Available Coverages:
  Fidelity, Theft, Burglary and various forms of Surety.