With more money spent per head on insurance premiums in Switzerland than any other country, the first overhaul of Switzerland’s Insurance Contract Act in 100 years is causing much discussion, say Christian Lang and Zsuzsanna Kunszt
Switzerland is not only known for its cheese, chocolate and (mistakenly) for the invention of the cuckoo clock, but also for its banks and insurance companies. The country is home to some of the world’s largest insurance carriers (eg Zurich, Swiss Re, Swiss Life), and at $6,634 (£4,294) per person, more money was spent on insurance premiums in 2010 than in any other country. In the light of this long-lasting insurance tradition it might come as a surprise that the Swiss Federal Act on the Insurance Contract (Insurance Contract Act, ICA) is about to undergo its first total overhaul in more than 100 years. Although the bill was only sent to parliament in September 2011, it has already spurred a lively discussion in the market.
