On 17 June 2026, the Swiss Financial Market Supervisory Authority (FINMA) reported that supervision of insurance intermediaries is underway and effective, resulting in improved distribution market quality, the creation of minimum training standards, and the registration of approximately 12,000 untied intermediaries. FINMA, however, emphasised that significant challenges persist, including unauthorised activity (i.e. an estimated 10% of market participants), inadequate qualifications, incorrect advice, fraudulent practices and prohibited cold calling.
FINMA gave this report during an intermediary symposium in Bern, which was attended by more than 1,000 industry participants to take stock of the revised Insurance Supervision Act (ISA) and Insurance Supervision Ordinance (ISO), which came into force on 1 January 2024.
Background
The revised ISA and ISO entered into force on 1 January 2024, bringing fundamental changes to the regulation of insurance intermediaries in Switzerland, such as introducing mandatory registration requirements for untied insurance intermediaries, minimum training and continuing education standards, and enhancing information and suitability obligations vis-à-vis clients.
Two and a half years after the ISA’s and ISO’s entry into force, FINMA convened its intermediary symposium in Bern to provide an initial assessment of how the new supervisory regime is operating in practice. Approximately 12,000 untied insurance intermediaries are currently entered in the FINMA register. Since 1 January 2024, more than 7,000 intermediaries registered while around 3,000 have deregistered.
Ongoing supervision of identified issues
Despite improvements in industry dialogue, training standards and distribution controlling, FINMA identified ongoing and significant problems requiring continued supervisory attention. Key areas of concern include unauthorised activity, which remains relatively prevalent with FINMA estimating that persons operating without authorisation account for around 10% of all market participants.
Compliance failures are also frequent: intermediaries provide unsuitable recommendations, particularly in relation to life insurance policies concluded without transparent cost information or a proper suitability assessment while some fail to meet their statutory obligations to inform clients.
As a reminder, the process of assessing the suitability of insurance products is governed entirely by insurance regulations and not by the Financial Services Act (FinSA). This process applies to qualifying life insurance policies, which can be defined as insurance policies where the policyholder bears the risk of loss during the savings process. The process also applies to capitalisation and tontine schemes.
In more serious cases, FINMA observed clients being pressured into concluding insurance contracts or given misleading performance expectations.
FINMA also monitors instances of fraud, including forged signatures, identity theft, and falsified qualifications. Cold calling, although banned, persists and is often associated with opaque business models.
Outlook
FINMA's symposium sent a clear signal that the revised intermediary supervisory framework is functioning, has brought measurable improvements, and the supervisory authority will continue to act decisively against unauthorised activities.
In light of FINMA's findings, market participants are well advised to review their compliance frameworks, training programmes, and incentive structures. Insurers relying on external distribution networks should pay particular attention to their oversight of intermediary conduct and the robustness of their distribution controlling.
Interestingly, the practical application of ISA has revealed unintended consequences for Swiss reinsurance sector. The registration requirement for reinsurance intermediaries has led specialised foreign intermediaries who often do not meet Swiss registration criteria to bypass Swiss reinsurers, shifting business abroad. To address this competitive imbalance, the Swiss Federal Council has proposed exempting reinsurance intermediaries from FINMA registration and supervision requirements, a measure considered appropriate given that reinsurance transactions occur between insurance companies and do not directly affect end-client protection.
Insurance intermediaries should note that further amendments to the regulatory framework might be considered in the coming years. Unlike the proposed relaxation for reinsurance intermediaries, future changes may not lead to a broader liberalisation of the supervisory regime applicable to insurance intermediaries. FINMA's continued focus on client protection and market integrity suggests that regulatory requirements for insurance distribution are likely to remain robust.
For more information on the supervision of insurance intermediaries in Switzerland, contact your CMS client partner or the local CMS experts who contributed to this article.
