New inspection obligation, old questions

Since more than half a year, insurance intermediaries will be subject to a new inspection regime with a modular structure and regular recertification. What the reform promises and where it causes trouble .

January 1, 2025 marked the end of the era of voluntary self-regulation for insurance brokers in Switzerland. In future, anyone who brokers or sells policies must pass clearly defined examinations and be recertified every two years. The new regulation affects around 35,000 people and is one of the most comprehensive regulatory changes in the insurance sector in years.

At the heart of the reform is a modular system: all intermediaries first complete the basic module “General Skills & Knowledge”. Depending on the activity, specialist modules such as non-life, life or supplementary health or special sectors such as motor vehicle fleet or crop failure are added. Admission to all sectors is only granted if all modules are passed. The exams usually take place online with video monitoring, the life module as an oral interview on site.

Why all this? Quality instead of gray areas

The reason for the reform is the revision of the Insurance Supervision Act (VAG). It stipulates that all intermediaries must provide evidence of their specialist knowledge. This should be standardized, transparent and verifiable. The aim is to ensure the quality of advice, drive black sheep out of the market and strengthen customer confidence.

The industry association VBV has developed the audit standards, which are reviewed and approved by the Swiss Financial Market Supervisory Authority FINMA. The industry has thus made a conscious decision in favor of self-responsibility under supervision.

More flexible, more modular – and potentially fairer

The new examination architecture certainly offers advantages with online examinations that enable individual learning rhythms. Modules can also be specifically tailored to job profiles and practical relevance is promoted through case studies and oral examinations.

Silvia Kljajic-Canale, course manager for insurance broking at the FSWI School of Business and IT, explains: “The changeover was also challenging for us as a training provider – particularly in terms of organization, structuring the material and scheduling. However, the new examination format, which is independent of time and place, now gives us much more freedom. Our current class passed the first examination (general skills and knowledge) under the new examination regulations with flying colors and without any technical problems. After a bumpy transition phase, this was an encouraging start to the new examination era.”

For customers, this means that anyone presenting a VBV certificate documents up-to-date specialist knowledge not just once, but regularly. This creates trust.

Criticism from the field: uncertainty, effort, costs

Despite the advantages, some points of criticism have been voiced in the industry. At this year’s Insurance Broker Forum in Rüschlikon, the tenor was clear: communication on the reform was inadequate. There are also questions as to whether the new modules are sufficiently practical for specialized activities, especially for niche brokers and office staff. The changeover also poses organizational challenges and costs for companies, as examinations, ongoing certifications and training represent additional burdens. Many are therefore calling for the system to be further developed in a flexible and practice-oriented manner.

The additional recertification requirement is particularly burdensome, as even long-standing specialists have to formally prove their knowledge every two years. For small companies and career changers, examination fees, time and training are additional barriers to entry. It is good to know that recertification can be repeated, no matter how often, but for a fee.

Between standardization and specialization: the balancing act

The conflict of objectives is obvious: uniform minimum standards ensure comparability, but threaten to bypass the reality of the profession. At the same time, a high degree of differentiation is almost impossible to administer. The wish from the field: more flexibility, less duplication and modular further development with a sense of proportion.

FINMA representative Noémie Savaria emphasized at the Broker Forum: “The system is not set in stone.” There is scope for adjustments, provided that the dialog between the supervisory authority, industry and training providers remains open.

Change with pent-up demand

The new inspection requirement marks a far-reaching change in insurance brokerage. It brings opportunities for more quality, transparency and trust. However, as with many reforms, success lies not in the rules alone, but in their implementation. In addition to standards, this also requires practicability, good communication and a willingness to make improvements. After all, quality is not only reflected in the certificate, but also in the day-to-day work of brokers.

Binci Heeb

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