Posts tagged "Swiss insurance"

Overview of the Insurance Business in Switzerland

Foreign investors can find an attractive business environment in Switzerland. The government encourages foreign investment through economic policies and laws such as comparably lower taxes and an extensive network of trade treaties to circumvent double tax schemes with European nations and other countries globally.

Switzerland has easy access to the European market through its dynamic innovation, political and monetary stability, and central position in Europe. Switzerland has clear and straightforward regulations with a friendly regulatory and tax environment.

Swiss companies hold a dominant position in the services field, especially in private banking and insurance. Insurance is a complete and profitable market in Switzerland. The Swiss insurance system is robust, allowing for a range of products and prices. 21% of the average Swiss citizen’s budget goes to insurance- a higher percentage than in other countries.

Most noteworthy is that Swiss insurance companies make more than half their income abroad. Switzerland is the leading European exporter of insurance.

Types of Insurance Legally Required in Switzerland

Health Insurance

It is mandatory to sign health insurance (unless you are an international official, diplomat, or family member). 90% of basic medical services and hospital expenses are covered by mandatory medical insurance. Visitors spending longer than 3 months in Switzerland must arrange health insurance within their first 90 days.

There are also circumstances in which someone not living in Switzerland must get Swiss insurance. Included in this are EU and EFTA citizens who benefit exclusively from a pension in Switzerland and live in the EU, Iceland, or Norway (this applies to family members who are unemployed as well). This also applies to Swiss citizens living in Iceland, Norway, or the European Community.

Travel Insurance

Travel insurance can be basic (including illness, accidents, or sports injuries) to extensive (including loss, theft, luggage damage, abroad departure cancellation, and airline bankruptcy).

Switzerland is also part of the European health insurance equivalence program. This means if you are on a temporary journey to a member country, you get urgent treatment as if you were a local.

Life Insurance

Life insurances cover disability and death risks and can stand in as a provision for old age. There is a difference between individual insurance and collective insurance. The former is a private pension, while the latter is an occupational pension. Employers or pension funds will often provide it as a benefit.

Home Insurance

Building and fire insurance is the building owner’s responsibility and is compulsory.

Personal property insurance includes insurance against fire, flood, and other major disasters. The insured amount depends on people living together and the number of rooms. Each insurance company has its own recommendations dependent on these criteria.

Car Insurance

Basic third-party cover insurance covers damage to third parties caused by the insured vehicle. It is mandatory and regulated by law. This covers physical and material damage and loss of income after an injury. It also protects the insured’s legal interests in the event of unmeritorious claims, covering expert and legal fees. There is also the option to add full insurance, comprehensive or semi-comprehensive, to cover damage to the insured car.

Registering an Insurance Company in Switzerland

Steps to registering an insurance company in Switzerland:

  • Choose a trading name for your company
  • Choose a business structure to represent this company
  • Open a bank account and deposit a minimum capital
  • Notarize documents for setting up the company
  • Submit documents for setting up the company to the Commercial Registry
  • Register company with relevant tax authorities

Insurance is Booming in Switzerland

Switzerland has a rich and vibrant insurance business. This business is far-reaching and conducive to growth on a global scale.