Tax
& Law+7 (495) 221 31 46
EN
RUEN中文العربية
Discuss a matter

SR 961.01 + SR 961.011 · Editorial explanation

Swiss Insurance Supervision: VAG and AVO

VAG and AVO are in force; the official consolidations dated 1 September 2024 and 26 February 2026 were reviewed. This independently explains the supervisory framework and is not the full text or an official translation.

Key takeaways

Key takeaways

This material explains the official publication without reproducing it and is not an official translation or individual advice. Current legislation, cantonal practice and the facts must be checked before application.

01

Before launching a product, the activity must be classified as insurance, reinsurance, intermediation or an unregulated service.

02

Authorisation is assessed together with organisation, capital, management, qualifying owners and the business plan.

03

SST, tied assets, reserves, governance, outsourcing and reporting form one prudential framework.

04

A cross-border model separately requires analysis of risk location, Swiss offering, branch, group supervision and policyholder protection.

01

Regulatory perimeter and authorisation

Classification follows economic substance: assumption of risk for a premium, promised cover, discretion, duration and risk pooling. A product's marketing label is not determinative. If the activity falls within the perimeter, the applicant documents legal form, purpose, capital, governance, responsible persons, qualifying owners, reinsurance, control functions and projections. Changes to the business plan or control after authorisation may also require advance approval or notification to FINMA.

02

SST, assets, reserves and governance

Prudential assessment connects the Swiss Solvency Test, technical provisions, tied assets, investment rules and liquidity. Board and management need clear allocation of responsibility, independent control functions, risk management and internal controls. Outsourcing does not transfer responsibility away from the insurer: contract, data access, audit, continuity and exit must preserve effective supervision. Reporting requires consistency across models, accounting data, actuarial assumptions and governing-body decisions.

03

Intermediaries, customers and cross-border model

Distribution analysis identifies the intermediary's role, tied or untied status, registration, knowledge, customer disclosure, remuneration and complaints process. A cross-border model requires review of contract location, policyholder residence, risk location, a Swiss establishment and the activities of staff or a digital platform. Group structure does not displace entity-level requirements. In recovery or portfolio transfer, policyholder protection, equal treatment and continuity of cover become separate legal workstreams.

Fedlex · ESTV · FINMA

Official source

This material explains the official publication without reproducing it and is not an official translation or individual advice. Current legislation, cantonal practice and the facts must be checked before application.

Smart Global Capital

Need to apply a Swiss rule to a structure or transaction?

We review classification, federal and cantonal consequences and the banking perimeter, and prepare a documented position.

Discuss the legal position

This material explains the official publication without reproducing it and is not an official translation or individual advice. Current legislation, cantonal practice and the facts must be checked before application.

WAWhatsAppTGTelegram