Individual life insurance

Although FINMA does not need to approve the rates that apply to individual life insurance, it does prescribe certain special requirements, including those for technical interest rates and surrender values.

Unlike occupational pension schemes, the law does not require life insurers to have their rates approved. Products must, nonetheless, meet certain special requirements.

Maximum technical interest rate

Under Article 121 Insurance Supervision Ordinance (ISO), the technical interest rate used for pricing in life insurance (excluding occupational pension schemes) generally cannot exceed the adjusted four-year rolling average of the reference interest rate. Where justified, FINMA can change this limit It communicates the current interest rate publicly.

Surrender values

Surrender values for individual life insurance products must be submitted to FINMA for approval as set out in Article 127 ISO. FINMA then checks whether the legal requirements in Article 127 para. 2 have been met.
The submission for approval of the surrender values takes place via the FINMA survey and application platform (EHP).