Major Events in the Swiss Private Insurance Sector in 2013

Transcription

1 Review of the Year Major Events in the Swiss Private Insurance Sector in 2013 January Location study for the Zurich insurance industry: The City and the Canton of Zurich presented the latest figures and analyses of Zurich as a financial hub. The study confirmed the significance of private insurers not only for the economy of Zurich, but for that of Switzerland as a whole and their role as drivers of economic growth Third private-sector health promotion conference: The Swiss Insurance Association in conjunction with economiesuisse and the Swiss Employers' Association organised a conference in Zurich entitled "Education: A Different Way to Promote Health". The conference participants discussed the relationship between education and illness prevention from various perspectives, referring to the current political debate in Switzerland and citing specific examples New strategy on healthcare policy: With its "Health 2020" strategy, the Federal Council is aiming to consolidate what has been achieved, take long-lasting measures to eliminate weaknesses in the healthcare system, and deal effectively with the challenges of the future. From the health insurers' standpoint, the Federal Council is pursuing lofty goals, but ones that often encroach on the insured persons' freedom of choice, trigger price rises and, all in all, further restrict competition. February SIA Media Conference: In 2012, the Swiss insurance industry once again performed well, continuing to post solid growth despite persistently low interest rates and major storm losses. Non-life premium volumes grew at a rate similar to that of the two preceding years. Growth in life insurance was driven mainly by group life insurance Taxation treaty with the United States: The Federal Council officially signed the initialled treaty covering the United States' Foreign Account Tax Compliance Act (FATCA). As the treaty takes the particular characteristics of the insurance business into account, the SIA welcomes both its signing and rapid implementation. Schweizerischer Versicherungsverband SVV C. F. Meyer-Strasse 14 Postfach 4288 CH-8022 Zürich Zentrale +41 (44) Fax +41 (44)

2 Financial Services Act: The steering committee of the "Financial Services Act" project published the report on its hearing into the planned legislation. The Swiss Insurance Association adopted a critical stance as regards the blanket inclusion of insurance products in the Financial Services Act Single state health insurer: The Federal Council launched the consultation process for its indirect counterproposal to the initiative "For a Single State Health Insurer". Private insurers welcomed the fact that the Federal Council opposed a state monopoly, but proposed that reforms be made through the customary law-making process rather than via a counterproposal. March Insurance Contracts Act: The Council of States referred the draft for a total revision of the Insurance Contracts Act back to the Federal Council for further amendments. The National Council had already referred the draft back to the Federal Council at the end of Insurers welcomed the Council of States' decision Single state health insurer: The National Council approved four motions calling for a rapid referendum, without counterproposals, on the initiative "For a Single State Health Insurer". The Council of States had previously accepted a similar motion. Private insurers welcomed this as a clear signal that parliament opposed the gradual nationalisation of health insurance. April Taxation treaty with the United States: The Federal Council referred to parliament its message concerning the treaty between Switzerland and the United States on the Foreign Account Tax Compliance Act (FATCA). The SIA recommended parliament deliberate on the treaty and the law as quickly as possible so that the relevant FATCA provisions could be implemented in Switzerland before the end of If the treaty had not been signed, the Swiss financial institutions in question would have been severely disadvantaged as from 1 January Injury prevention campaign: A properly adjusted headrest offers greater protection and lowers the risk of suffering injuries in the event of rear-end collisions. As part of a joint campaign organised by the Swiss Insurance Association and Coop Pronto, teams at 50 service stations advised individual motorists on the correct position for their headrests. June Employment Act: The Federal Department of Economic Affairs, Education and Research (EAER) announced that, in its current form, the proposed section on "Waiver of the obligation to record hours worked" in Ordinance 1 to the Federal Employment Act could not be submitted to 8. Februar 2013 Review of the Year Major Events in the Swiss Private Insurance Sector in /5

3 the Federal Council, but would instead be revised. The draft had not gained sufficient support from legislators SIA Media Conference: According to the new "Location study for the Swiss Insurance Industry" carried out by Bakbasel, an independent research institute, the insurance sector is one of the most productive industries in Switzerland. It not only weathered the recent financial crisis very well, but is set to post above-average growth in future. Regulatory developments constitute one of the key challenges facing the industry Pension System 2020: The Federal Council presented the key points of a comprehensive reform of the pension system. The Swiss Insurance Association welcomed the fact that the proposed reform package known as "Pension System 2020" had been fleshed out and voiced support for its basic thrust, namely to maintain a clear division between the first and second pillars and to stabilise each pillar individually. The SIA advocated rapid implementation of the urgently required measures SIA Media Conference: Non-life insurers presented details of their extensive efforts to prevent natural disasters. As a result of climate change, insurers expect to see an increase in the number of storm events and in natural-hazard losses. They are playing an active part in meeting these challenges by paying claims, investing in preventive measures and coordinating their activities with the federal government. September BVG minimum interest rate: The Federal Committee for Occupational Pensions proposed a minimum interest rate on pensions of 1.75% for In the opinion of the Swiss Insurance Association, this rate is too high. Private insurers have long advocated setting the BVG minimum interest rate on the basis of a transparent formula, according to which a rate of 1.25% would be appropriate "1:12" initiative: The Swiss Insurance Association drew attention to the risks posed to the social security system, and thus to the prosperity of the country as a whole, by the Young Socialists' "1:12" initiative. The SIA advocated instead the individual responsibility of its member companies and their employees for determining salaries Occupational pensions: The Financial Market Supervisory Authority (FINMA) published a report on the activities of private life insurers in the field of occupational pensions. The report showed that life insurers had again succeeded in lowering the administrative costs of occupational pensions. Entitled "Disclosure of P&L 2012", the report contains a wealth of statistics and provides a comprehensive picture of how important private life insurers are to the second pillar. 8. Februar 2013 Review of the Year Major Events in the Swiss Private Insurance Sector in /5

4 Single state health insurer: The Federal Council abandoned its counterproposal to the popular initiative "For a Single State Health Insurer". In what was a clear stance, the Federal Council underscored that a reform of the healthcare system did not necessitate the introduction either directly or "via the back door" of a single state health insurer. Private insurers welcomed this move as the Federal Council's position in the matter became much clearer. October BVG minimum interest rate: The Federal Council raised the BVG minimum interest rate for 2014 to 1.75%. In the opinion of life insurers, that rate is too high especially given that numerous pension funds are still underfunded. The Swiss Insurance Association regrets the fact that the Federal Council failed to come out clearly in favour of sustainably financing the second pillar. According to the formula proposed by the SIA, the BVG minimum interest rate for 2014 should have been lowered to 1.25%. November Pension System 2020: The Federal Council launched the consultation process for the "Pension System 2020" reform package, adhering for the most part to the key points it outlined in June The only area in which it departed from its original proposal was the statutory minimum distribution rate for occupational pensions, where it had favoured first seeking an external appraisal. The SIA regrets the Federal Council's decision "1:12" initiative: A clear majority of the electorate (65.3%) rejected the Young Socialists' "1:12" initiative. The Swiss Insurance Association welcomed the outcome of the vote, not least because the insurance industry's prosperity correlates strongly with the country's rising affluence. December Pension Monitor 2013: The SIA and research institute gfs.bern presented the results of the "Pension Monitor 2013" survey, according to which most voters think that our pension system functions well and that they will be able to realise their plans for life after retirement. The survey also showed that the "Pension System 2020" reform package is setting the right priorities. The life insurers' purpose in organising the "Pension Monitor 2013" survey was to make a contribution to the ongoing pension reform debate Employment Act: In a new directive, the State Secretariat for Economic Affairs (SECO) clarified the obligation to record hours worked. According to the directive, employees must with very few exceptions record the time they have worked. As many businesses in the insurance 8. Februar 2013 Review of the Year Major Events in the Swiss Private Insurance Sector in /5

5 industry offer what is known as "pure flextime" (where working hours are not recorded at all), the SIA supports an industry-specific solution to this problem. 8. Februar 2013 Review of the Year Major Events in the Swiss Private Insurance Sector in /5