Tools used in the context of insurance groups and conglomerates

FINMA supervises insurance groups and conglomerates, as well as the single entities within them.

An insurance group is deemed to exist when several companies combine to form one business entity which, in its entirety, is mainly active in the insurance sector. A conglomerate differs from a group in that it includes at least one bank or securities dealer with a significant role in the business.

Group supervision supplements individual supervision

FINMA can place insurance groups and conglomerates registered in Switzerland under group supervision, which applies in addition to supervision of the single entities.

The key focus of group supervision, in which groups are viewed from a consolidated perspective, is to analyse and assess the risks entered into by major insurance groups, most of which operate internationally. Group supervision also looks at the groups' internal processes and structures.

Tools used in group supervision 

  • Analysis and reporting on the solvency, risk situation/concentration and compliance with corporate governance requirements of groups in their totality. The basis for this is provided by collecting data and information periodically.

  • Preventive measures (if necessary, based on reviews of statutory and regulatory reporting requirements, threshold values and other requirements).

  • Intervention in the event of infringements of supervisory requirements;

  • In an international context, group supervision participates in Supervisory colleges.

2016/04 FINMA Circular "Insurance groups and conglomerates" (03.12.2015)

Supervision, organisation, structure, intra-group transactions, and reporting by insurance groups and conglomerates

Updated: 03.12.2015 Size: 0,17  MB
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