On 19 June 2020 the Council of States and the National Council approved the revision of the Insurance Contract Act. This revision not only adapts the Insurance Contract Act to the requirements of the digital age, but also addresses, among other things, criticism that has been widespread in recent years.
This paper gives a short outlook on the changes that will have to be implemented by the end of 2021, food for thought on what to consider during implementation and inspiration on how the revision can accelerate your operations.
Purpose and motivation of the revision
The Insurance Contract Act entered into force way back in 1910. After a partial revision of the law in 2006 to include urgent consumer protection issues, the proposed total revision of the law was rejected by the parliament in March 2013 and the Federal Council was assigned to draw up a partial revision of selected items. The objectives of the partial revision were, among others, to protect policyholders, increase transparency for consumers and enable electronic business traffic across the insurance sector.
How does the revision impact Swiss insurers?
Overall, the introduction of the revised Insurance Contract Act entails numerous changes for Swiss insurers and their clients and goes into the details of the law. For simplicity we have clustered the impact of the revision into three categories: products, technology and operations (as shown below). In our publication we analyse the potential impact in each category.
What insurers need to do within the next seven months
Together with our actuarial, technology, legal and business experts, we have developed a prioritised step-by-step approach as a guideline on what to do in the next seven months. PwC experts can support you in responding to the regulatory changes in a way that fits your situation best. In this publication we guide you through the steps of a structured approach to understanding the impact of the regulatory changes and to harnessing the opportunities created by the revision. We also show you which requirements must be fulfilled from a regulatory standpoint (high priority) and requirements that should be analysed from a business standpoint (low to middle priority).
How can PwC support you?
The changes to the Insurance Contract Act are yet another push for insurance companies to adapt to an ever-changing digital world. The revision entails changes in regulatory requirements for Swiss insurers, which affect many parts of the organisation. We at PwC have deep knowledge in each of these areas. Furthermore we have years of experience in implementing regulatory changes, which allows us to ensure seamless support across all business divisions.
In order to aid you in mastering your challenges, we share our profound understanding from a legal, actuarial and technological perspective, which we have drawn on in the past to successfully guide our clients in defining and achieving their objectives. On top of that we can leverage hands-on knowledge from related insurance projects in data protection, change and process management, cyber security and front/back-office transformation. We would be happy to discuss with you what impact the revised Insurance Contract Act might have on your company and your services and support you in finding the best solution.
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