Relief for reinsurers
The relief for reinsurers in supervisory categories 4 and 5 and the conditions that need to be met are set out on this page. The relief for primary insurers in the same supervisory categories is explained here.
Conditions for reinsurers to benefit from exemptions
The conditions set out in Article 1d ISO must be met in order for reinsurers to benefit from exemptions:
Reinsurers must comply with the principles of proper corporate governance as well as the regulatory requirements on risk management, the internal control system and internal audit.
In order to participate, there must be no supervisory measures or proceedings involving the reinsurer in progress. In the case of a run-off company there must be an approved run-off plan.
Exemptions for reinsurers
In the Swiss Solvency Test (SST) report, firms do not need to provide detailed information on developments in risk-bearing capital and target capital and the impact of scenarios for up to three consecutive years, provided the company’s risk position is sufficiently transparent at all times.
The following regular surveys by FINMA are not required:
- Corporate governance assessment
- Internal control system (ICS) self-assessment
- Questions on operational risk
The reporting requirements are reduced.
- Public disclosure: the reduction in disclosure obligations will be in line with revised FINMA Circular 16/2 “Disclosure – insurers”.
- Auditing: case-by-case reductions in the frequency or scope of audits, depending on supervisory requirements for the various audit areas.
To be submitted annually to FINMA by reinsurers
RIs must submit an annual confirmation of compliance with corporate governance principles and the principles of risk management. This must be done using the form provided in the survey and application platform (EHP) by the end of April at the latest, which you can find under Submissions.
Questions can be sent to FINMA at kvr-erv@finma.ch.
