An insurance company supervised by FINMA can opt to surrender its licence at any time. This does not mean, however, that it is automatically released from supervision. FINMA remains tasked with protecting the interests of insured persons, also during the winding-up phase.
The procedure for surrendering a licence is regulated in Article 60 of the Insurance Supervision Act (ISA
). The insurance company must submit a winding-up plan to FINMA for approval. It must contain information about the following:
- the winding up of financial obligations arising from insurance contracts;
- the assets provided for this purpose, and
- the person responsible.
Supervision ends only after all obligations have been met
An insurance company which has surrendered its licence is prohibited from writing new insurance business in the relevant insurance sectors. Neither the terms nor the scope of pre-existing insurance contracts may be extended. Only when a company has met all its obligations under supervisory law will it be released from supervision. Any sureties provided will be returned to it at that point.