Tied assets and investment guidelines

Investments made by insurance companies used to meet claims arising from insurance contracts, represent tied assets and are therefore subject to special investment rules. These rules do not apply to reinsurance companies.

Insurance companies are legally obliged to guarantee claims arising from insurance contracts by establishing tied assets. Owing to this rule, insured persons have a liability substrate which ensures that their claims under insurance contacts will be satisfied before the claims of all other creditors if an insurance company becomes insolvent.

Special investment rules

All insurance companies, with the exception of reinsurers, must obey special rules when investing tied assets. These are set out in FINMA Circular 2016/5 and specify not only the eligible asset classes but also the requirements to be met by insurance companies in terms of their investment organisation and processes. The rules contain precisely formulated restrictions for riskier asset classes.

FINMA and the authorised audit firms monitor compliance with these rules on at least an annual basis and in the event of special occurrences.

In its annual Report on the insurance market, FINMA shows the types of capital investments used by insurance companies for their tied assets.

Investments in non-tied assets

Where non-tied assets are concerned, an insurance company's funds must also be invested in such a way that the company's solvency is not jeopardised. To ensure that this is the case, FINMA carries out on-site supervisory reviews of selected insurance companies.
2016/05 FINMA-Rundschreiben "Anlagerichtlinien - Versicherer" (03.12.2015)

Anlagen im Gesamtvermögen und im gebundenen Vermögen von Versicherungsunternehmen

Updated: 03.12.2015 Size: 0,45  MB
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