New audit regime, old uncertainties – How the VAG revision is shaking up the industry

The partial revision of the Insurance Supervision Act (ISA) introduces uniform rules for all insurance intermediaries in Switzerland for the first time. 35,000 people are affected. What was intended as a step towards quality assurance is causing uncertainty and heated discussions among many brokers about the meaning, practical relevance and communication of the new inspection obligation.

Since July 1, 2025, anyone who brokers or sells insurance contracts in Switzerland must meet defined minimum standards and pass corresponding examinations. For many, this is a long overdue step. The reform affects around 35,000 people, making it one of the biggest regulatory changes in the insurance sector in recent years. It also marks the end of the previous system of voluntary self-regulation.

Between aspiration and reality: communication deficits hamper implementation

A key topic on the panel at the Insurance Broker Forum 2025 on the VAG revision was the lack of communication. Many brokers reported uncertainty and a lack of clarity, particularly during the transition phase. “I would have liked a clearer introduction and more timely information,” was the general consensus. Although the responsible office emphasizes that there has been more communication than ever before, the heterogeneous structure of the industry obviously made it difficult to provide comprehensive information.

Quality yes – but with practical relevance, please

The intention behind the new examination and further training requirement is clear: to ensure quality and force black sheep out of the market. However, many in the industry criticize the lack of accuracy of the content. The modules are too general and lack the practical relevance for specialized activities in the back office or in industrial insurance. “Our people learn content that has no relevance to their day-to-day work,” says Ivo Flüeler from ARISCO Risk Consultants.

The major conflict of objectives: standardization versus specialization

The new regulation is aimed at basic protection, which means a broad knowledge base instead of deep specialization. But this is precisely where the dilemma lies: the more general the examination, the greater the risk of regulating without taking into account the actual day-to-day work. At the same time, too much differentiation is difficult to manage administratively. The result: a balancing act between regulatory requirements and operational reality.

A system in motion – and in search of balance

Despite all the criticism, many industry representatives recognize the opportunity that lies in standardization. “The auditing standards were developed jointly by insurers, brokers and health insurers over many years”, says Noémie Savaria from FINMA, “and they can be changed”. There is therefore scope for readjustments, especially if it becomes clear in practice where there are problems. However, one wish remains clear: no equation with the stricter financial market regulation of the banking world.

The new audit requirement is more than just a bureaucratic act, it is a signal of change for an entire industry. For this change to succeed, it requires not only regulations, but also dialog, flexibility and a realistic understanding of what brokers do in practice. Because quality is not only measurable – it is also tangible.

Binci Heeb

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