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)

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 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.