English translation of article 26 of the Swiss Insurance Supervision Act

Special accounting provisions  

Chapter 3: Conduct of insurance activities

This page contains an English translation of the below Article of the Swiss Insurance Supervision Act (ISA) and is part of a web based Swiss ISA commentary in German language. Should you require qualified written legal advice on the ISA from a Swiss lawyer please do not hesitate to contact: Melissa Gautschi

Article 26 of the Swiss Insurance Supervision Act 

Special accounting provisions

1 Insurance companies must establish the statutory retained earnings in accordance with their business plan. The supervisory authority shall regulate the minimal allocation amount.

2 The costs of incorporation, capital increase and organisation must be charged to the organisation fund in the financial year in which they incur.

3 The Federal Council may diverge from the provisions of the Swiss Code of Obligations on accounting and financial reporting if the specificities of the insurance business or the protection of the insured so justify and the economic situation is presented in an equivalent manner.

4 The Federal Council may authorise the supervisory authority to issue implementing provisions in matters of lesser significance, namely in primarily technical matters.

5 Under the conditions laid down in paragraph 3, the supervisory authority may restrict the application in the area of insurances of the accounting standards recognised by the Federal Council.