Federal Council adopts dispatch on agreement with Liechtenstein on insurance against natural forces

Bern, 02.09.2015 - Today, the Federal Council submitted to Parliament the dispatch on the agreement signed with Liechtenstein on insurance against natural forces provided by private insurance companies. The agreement increases legal certainty and transparency in the cross-border insurance business.

The relationship between Switzerland and Liechtenstein in the cross-border insurance business is governed essentially by the Direct Insurance Agreement of 19 December 1996. This agreement guarantees that an insurer with its registered office in one of the two countries can establish itself in the other country and can provide cross-border insurance services. The newly concluded agreement on insurance against natural forces supplements the aforementioned Direct Insurance Agreement and increases legal certainty and transparency in the cross-border insurance business relating to natural forces. Damage from natural forces is damage caused by natural events.

In most cantons, insurance against natural forces for buildings is provided by cantonal building insurers that hold a monopoly. In the remaining cantons, private companies provide corresponding insurance. For this privately organised insurance against natural forces, the "solidarity circle" ensures that comparable risks can be insured at the same premium rates. The agreement on insurance against natural forces includes Liechtenstein in this "solidarity circle".

For Swiss policy holders, this will not result in any rate adjustments. The agreement on insurance against natural forces will be implemented by the financial market supervisory authorities in the context of existing cross-border supervisory cooperation.

Address for enquiries

Mario Tuor, Head of SIF Communications
Tel. +41 58 462 46 16, mario.tuor@sif.admin.ch