Industry in transition – attitude instead of hysteria

At the Swiss Insurance Brokers Association (SIBA) event in Zurich, President Markus Lehmann made clear the pressure for reform in the insurance industry and called for a sense of proportion from politicians. The economist Prof. Dr. Klaus W. Wellershoff then provided a global view of the economic outlook: differentiated, pointed and surprisingly optimistic.

The SIBA social program following the 34th Annual General Meeting brought together over 200 representatives from the insurance industry, business and regulation and demonstrated the relevance of the independent insurance mediation association. In his welcome address, Markus Lehmann, President of SIBA, emphasized the desire for constructive dialogue, but also warned against increasing regulatory frenzy.

“We don’t want a vale of tears”

“We are not against rules, but against overregulation,” emphasized Lehmann. With regard to the current implementation of the Insurance Supervision Act (ISA) by the Financial Market Supervisory Authority (FINMA), he expressed his disappointment: “We understand that FINMA adheres to the ordinance. But a certain amount of sensitivity in the interpretation would have been desirable.” The new ISA falls short of practical reality in parts and could have an existential impact on smaller market participants in particular.

Lehmann also spoke out in favor of an optional referendum on ordinances: “We need democratic control over implementing provisions again, which often go further than the law itself.” The trend towards more and more government spending and bureaucracy is a creeping burden on the economy. And he warned: “If we change the rules of the game during the game, it won’t help anyone, not even the credibility of the system.”

Structural change with opportunities

The presentation by Prof. Dr. Klaus W. Wellershoff, former Chief Economist at UBS, was eagerly awaited. Despite the multitude of global uncertainties, he surprised the audience with a clear stance: “I am an optimist – not because everything is good, but because there are more opportunities than risks in this world.”

Wellershoff drew a macroeconomic picture that shows one thing above all: The economic center of gravity is shifting to Asia. By 2040, China will become the world’s largest economy and India will overtake the USA. This is a great opportunity for export-oriented Switzerland, provided it does not lose touch.

His advice to the insurance industry: “Don’t moan about geopolitical shifts – but actively tap into new markets.” Switzerland must position itself more broadly in terms of foreign trade, especially towards Asia, without giving up its proximity to Europe.

Digitalization and demographics as a dual challenge

Wellershoff also had a clear opinion on technology and the world of work. Technological progress – including through AI – will not create mass unemployment. “We don’t have a job shortage, we have a work volume problem.” This is because the desire for more free time is accompanied by a decrease in available working hours, which puts a strain on growth and social welfare systems.

“We keep talking about demographics, but the bigger lever is working hours. If we all work 10 percent less, we lose 10 percent of our tax base. It’s as simple as that.”

At the same time, he warned against the regulatory burden, which mainly affects smaller players in the financial and insurance sector. “We are losing competition through overregulation and this ultimately weakens everyone.” The numerous requirements in particular had led to hundreds of small asset managers disappearing from the market. This is tantamount to a loss of diversity and innovation.

The message: realism, but with a tailwind

At the end of the SIBA event, the conclusion was clear: the industry is under pressure from regulation, interest rate developments and geopolitical tensions. But there is also a tailwind. The stable state of the Swiss economy, the high level of education and the adaptability of companies offer the best conditions.

Or as Klaus Wellershoff put it: “Those who embrace the new technologies and focus on the most dynamic markets will win.”

And Markus Lehmann added: “The insurance industry doesn’t need to be affected, it needs an attitude. And that’s what we stand for.”

Binci Heeb

Read also: SIBA AGM: The insurance industry must improve together