This study examines the first experiences with the new disclosure requirement (financial condition report or Public Disclosure) in the Swiss insurance market. One finding was that the interest in the financial condition report (FCR) among policyholders has so far been limited. Furthermore, from the point of view of many of the insurers surveyed, the costs exceed the benefits and Public Disclosure is perceived as a compulsory exercise with little added value.
The disclosure requirement is one of the elements which the European Insurance and Occupational Pensions Authority (EIOPA) has demanded from Switzerland for equivalence with EU regulation (Solvency II) with the aim of ensuring more comparable and transparent information for the protection of policyholders.
The study is based on a standardised online survey of representatives of 52 insurance companies and an analysis of financial condition reports of 54 insurance companies. The study examined the following topics:
Formal aspects of the financial condition reports
Purpose and use of the reports
Preparation of reports
Feedback on the reports
Exchange with FINMA
Illustration 1: How do you use the financial condition report in addition to fulfilling regulatory requirements? (n = 52), (multiple answers)
Illustration 2: How would you relate the benefits to the costs of the financial condition report? (Keyword cost/benefit analysis) (n = 47)
Illustration 3: How often has the financial condition report been downloaded? (n = 52)