Protection of policyholders

Policyholders are protected by insurers’ provisions in the form of tied assets. This gives them a preferential status compared with other creditors.

In its capacity as the supervisory authority for insurers, one of FINMA’s core tasks is protecting policyholders’ claims under insurance contracts These claims are given preferential treatment over those of all other creditors and are the first to be met from tied assets.

Sufficient technical provisions

Every insurer must form sufficient technical provisions in accordance with clearly defined principles. These must be covered by tied assets at all times. Insurers must comply with strict requirements for risk management and diversification, permitted asset classes and investment management when investing their tied assets.