Switzerland has to date concluded two international agreements in the area of insurance: one with the European Community and one with the Principality of Liechtenstein.

European Union (EU)

Agreement between the Swiss Confederation and the European Economic Community on direct insurance other than life insurance (SR 0.961.1)

Following the adoption of the first EEC Directive on non-life insurance (73/239/EEC), which introduced freedom of establishment among the member states, Switzerland opened negotiations with the EEC to ensure that Swiss insurers did not face discriminatory conditions of establishment in EEC member states.

These negotiations led to the Agreement on Non-Life Insurance, which was concluded on 10 October 1989 and entered into force on 1 January 1993.

The agreement secures freedom of establishment for Swiss insurance companies active in the non-life insurance segment in all European Union member states and vice versa. The key principles of the agreement include the requirement to obtain an operating licence and supervision by the country in which the branch is active.

Ongoing supervision must at the very least include controls of actuarial reserves and the corresponding assets that cover them. Assessments of the solvency of insurance companies are carried out by the country of domicile and are based on solvency margin calculations, the details of which are set out in the agreement.

Principality of Liechtenstein

Agreement between the Swiss Confederation and the Principality of Liechtenstein on direct insurance and insurance intermediation (SR 0.961.514)

The agreement, which was concluded on 19 December 1996 and entered into force on 9 July 1998, was concluded at the request of Swiss insurers following the inclusion of the Principality of Liechtenstein in the EEA agreement. The Swiss insurers wanted to ensure that they would not be discriminated against relative to their EEA counterparts in respect of business transacted in Liechtenstein, which had previously always been regarded as Swiss business.

The agreement provides guarantees to insurers domiciled in either country in respect of freedom of establishment and the freedom to provide services on the territory of the other country by means of a uniform licence issued by the country of domicile and valid in both countries (principle of supervision by the country of domicile). The agreement is based on the mutual recognition of supervision rights. Its provisions are directly applicable and are not implemented in Swiss law.

Since 1 July 2007 insurance intermediaries enjoy the same advantages as insurance companies. Parliament approved the agreement on 13 June 2008 and authorised the Federal Council to ratify it.