Regulation under Pressure

17 June, 2025 | Current General
Regulation under Pressure: Dr. Reto Dahinden, CEO SWICA, Vera Carspecken, FINMA, Martin Geser, Directeur général TSM Compagnie, Andrea Hohendahl, Editor-in-Chief HZ Insurance.
Regulation under Pressure: Dr. Reto Dahinden, CEO SWICA, Vera Carspecken, FINMA, Martin Geser, Directeur général TSM Compagnie, Andrea Hohendahl, Editor-in-Chief HZ Insurance.

At the HZ Insurance Forum 2025, it became clear that the insurance industry is at a turning point. Between growing regulatory pressure, unclear standards and increasing complexity, the question of personal responsibility and transparency is taking center stage.

Regulation is not a new topic in the insurance industry, but the tone has intensified. “There are questions to which we have no answers,” said Martin Geser, Directeur général of TSM Compagnie d’Assurances, at the panel on VAG and AVO. The large number of requirements, particularly for special products, and the lack of harmonization are causing frustration. Vera Carspecken, Head of the Insurance Division ad interim at FINMA, also emphasized how difficult the practical implementation of new requirements is: “Transparency is important, but what does it mean in concrete terms? What is practicable and what is not?”

There is a lack of clarity in insurance brokerage in particular. Many regulations fall short or are difficult to implement. There is a great deal of uncertainty, a great deal of demand for transparency and a great deal of lack of information. More standardization is required to put the relationship between insurers, brokers and customers on a solid foundation.

The risk remains in the industry

A key example is the question of when transport offers become insurance advice and who is then liable. “When we apply these regulatory requirements to such special cases, uncertainty arises,” explained Martin Geser. In this regulatory no-man’s land, the industry moves between self-regulation and state intervention. This leads to a lack of transparency, especially in consulting.

“We don’t have a mass product, every insurance solution is a special case,” Geser continues. That is why clear but practicable standards are needed. Intermediaries should not be placed under general suspicion, according to the unanimous vote. There are many good brokers and a few black sheep that everyone knows about, but they are not the majority.

Regulation in practice: between reality and the desire for reform

When asked whether he had a better understanding with FINMA since the General Assembly of the Swiss Insurance Brokers Association (SIBA), Martin Lehmann, President, replied: “I am not happy in the meantime, but we have a better relationship with FINMA, partly because they now understand that problems arise when employees are not registered and we are therefore no longer allowed to work together.” He was addressing a structural problem that affects many insurance intermediaries: new regulations are being introduced without fully considering their impact on day-to-day practice.

Lehmann also warned against regulatory overkill: “We regulate, regulate, regulate again, and the regulations often go far beyond what was decided politically.” His appeal: Switzerland urgently needs tangible ordinance law that is democratically legitimized and practicable. Nevertheless, he also sees progress: “The Safeguarding Ordinance can strengthen the industry if we shape the new regulation together. This requires dialog.”

Economic headwinds: impetus from Prof. Aymo Brunetti

The keynote speech by Prof. Dr. Aymo Brunetti provided an overarching framework for assessing the challenges. The economist analyzed the “economic outlook in a turbulent environment” and warned of structural risks such as protectionism and geopolitical tensions. Although inflation is declining, growth remains too weak: “Less than four percent global growth is not enough for a healthy global economy in the long term.”

The political uncertainties in the USA – particularly in the election year – as well as conflicts such as the war in Ukraine and tensions in the Middle East had a negative impact on the global investment climate. For Switzerland, this means more geopolitical volatility, a strong franc and a tense export situation. “The question also arises for the insurance industry: how resilient is its business model to such shocks?”

Clarity required – not control for the sake of control

What is needed is not more control, but more clarity. Today, the insurance industry is faced with the task of not only implementing legal requirements, but also regaining trust through transparent communication. The industry is signaling its willingness, but it needs a stable, reliable framework.

Or as Vera Carspecken put it: “The discussion must become more competent and decisive, so that we can move forward together.”

Binci Heeb

Read also: Insurance industry 2030: Between risk, regulation and resilience


Tags: #Benchmarks #Clarity #Complexity #Fairness #Lack of transparency #Personal responsibility #Print #Quality content #Regulation #Risk #Special products #Standards #Turning point