New LSA 2024: New regulation to protect policyholders.
The revision of the Insurance Supervision Act (ISA) and the Ordinance on Supervision (OS) effective January 1, 2024 brings significant changes for insurance brokers and insurance intermediaries in Switzerland. These changes are aimed at strengthening policyholder protection and enhancing competitiveness and innovation in the Swiss insurance industry.
The LSA requires the industry to establish minimum standards for the skills and knowledge of insurance brokers and insurance intermediaries. These standards will have to be approved by FINMA and strictly adhered to. In addition, the requirement for basic and continuing education will extend to anyone offering and entering into insurance contracts, including internal staff involved in sales.
One relevant point is that the term "insurance brokerage" has been further specified by the Federal Council, highlighting that anyone dealing with insurance contracts is required to undergo basic and continuing education. However, young insurance brokers and insurance intermediaries will be allowed to maintain contact with clients independently, provided certain conditions for client protection are met.
The main challenge is the effective date of 2024 and the two-year transition period for basic and continuing education (the latter from the approval of the minimum standards). Therefore, it is crucial that companies, insurance brokers, and insurance intermediaries carefully prepare for the upcoming changes through information and recommendations on their implementation.
Of note, CMO CASSA MALATI ONLINE is adhering very strictly to the new regulations, confirming its role as a reliable partner for clients in this changing regulatory environment. Through its dedication to providing reliable and informed services, CMO continues to be a safe choice for its clients.
