Resolution of insurance companies

If an insurance company becomes destablised, FINMA monitors the recovery closely. If there is a risk of insolvency, it evaluates the chances of a successful restructuring or initiates bankruptcy proceedings.

If regulatory requirements are breached in the insurance sector, FINMA will attempt to restore compliance with the law. It gives the insurance company an appropriate period for this and monitors the insurance company’s recovery efforts. The recovery essentially serves the policyholders’ interest in continuing their insurance relationship. FINMA can order accompanying protective measures, such as the blocking of tied assets or by prohibiting the insurance company from taking on new clients. The insurance company can also opt for a solvent winding-down of their operations on a voluntary basis (run-off). If stabilisation attempts are unsuccessful and there is a risk of insolvency, FINMA takes the necessary measures. If there is a prospect of a successful restructuring, FINMA can order this. Otherwise, if there are grounds for bankruptcy, it initiates bankruptcy proceedings.