English translation of article 37 of the Swiss Insurance Supervision Act

Special rules for occupational pension insurance business  

Chapter 3: Conduct of insurance activities
Section 6: Special provisions for individual insurance lines
> Art. 36 Life insurance

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 37 of the Swiss Insurance Supervision Act 

Special rules for occupational pension insurance business

1 Insurance companies conducting occupational pension insurance business shall establish special tied assets for their obligations arising from occupational pension insurance.

2 They must maintain separate annual accounts for their occupational pension insurance activities. These shall in particular show:

a. any withdrawals from the reserves for future surplus participation;

b. premiums, divided into savings, risk and cost premiums;

c. insurance benefits;

d. any surpluses bindingly allocated to the policyholders the previous year and distributed during the reporting year;

e. capital gains as well as non-realised profits and losses on investments;

f. costs and revenues of applied derivative financial instruments;

g. verified acquisition and administration costs;

h. verified asset management costs;

i. premiums and benefits from the reinsurance of invalidity, mortality and other risks;

j. establishment and release of verified technical reserves and verified earmarked fluctuation reserves.

3 The Federal Council shall issue regulations on:

a. the manner in which the information to be disclosed in the separate accounts must be presented;

b. the basis on which the surplus participation is determined;

c. the basis on which the determined surplus participation is distributed.

4 The established surplus participation shall amount to at least 90% of the surplus participation determined in accordance with paragraph 3 letter b.

5 If the accounts show a loss, no surplus participation shall be distributed for the financial year in question. The loss shown shall be carried forward to the subsequent year and then taken into account for the determination of the surplus participation.