On December 13, 2021, the Swiss Council of States (Ständerat) addressed the partial revision of the Swiss Insurance Supervision Act (ISA) as second legislative chamber. As put forth by its Economic Affairs and Taxation Committee, the Council of States largely confirmed the decisions taken by the National Council (Nationalrat) on May 3, 2021.
Specifically, we would like to point out the Council of States&#8217; consent to making insurance special purpose vehicles subject to prudential supervision by the Swiss Financial Market Supervisory Authority FINMA (FINMA) (art. 2 para. 1 lit. e E-ISA) and to expand the possibilities for insurance companies to engage in non-insurance business without FINMA approval (art. 11 E-ISA).
The Council of States has however proposed a few significant changes. Deviations from the National Council&#8217;s decision pertain to the following topics:
<ul>
<li>Confirmation of the approach proposed by the Federal Council, whereby international capital standards may allow for amendments to the Swiss Solvency Test (SST), but not replace its application entirely (art. 9c E-ISA);</li>
<li>Broadening of the defintion of professional policyholders to include large companies as defined in art. 98a para. 2 lit. g of the Insurance Contract Act (Versicherungsvertragsgesetz; in its version coming into force on January 1, 2022);</li>
<li>Inclusion of provisions on the legal relationship between insurance special purpose vehicles and their compartments («risk groups») (art. 30f E-ISA);</li>
<li>Deletion of the possibility for insurance undertakings to collectively negotiate with service providers and conclude tariff agreements in the area of supplementary social health, as was proposed by the National Council (art. 31b E-ISA);</li>
<li>Re-introduction of the obligation for unaffiliated insurance intermediaries to join an ombudsman office, as was deleted by the National Council (art. 41 para. 1 lit. e E-ISA);</li>
<li>Exclusion of certain risk-absorbing capital instruments when determining whether an insurance company is overindebted (art. 51a para. 2bis E-ISA);</li>
<li>Consistent approach to the treatment of risk-absorbing capital instruments (tier 2 instruments) in a reorganisation or bankruptcy scenario (art. 54ter E-ISA);</li>
<li>Differentiation between contractual bail-in instruments (Art. 52d para. 3 lit. b E-ISA) and statutory bail-in (Art. 52d para. 4 lit. a E-ISA) with respect to conversion into equity or reduction of claims in the event of a reorganization.</li>
</ul>
As a next step, the National Council will review these deviations with the aim of resolving any remaining differences. The procedure for the resolution of differences could potentially conclude when parliament meets in spring 2022. Despite it being unclear at this stage when the partially revised ISA will enter into force, we currently do not expect this to happen before January 1, 2023.
The Council documents on which the Council of States&#8217; deliberations were based are available <a href="https://www.parlament.ch/centers/eparl/curia/2020/20200078/S2%20D.pdf" target="_blank" rel="noopener">here</a> (only available in German, French and Italian).
For further information on the changes in insurance as a result of the partial amendment of the ISA, we kindly refer to our Push dated October 21, 2020 and the statement submitted by Homburger AG as response to the consultation draft:
<a href="https://www.homburger.ch/en/insights/dispatch-on-the-partial-amendment-of-the-insurance-supervision-act-adopted" target="_blank" rel="noopener">Homburger-Push October 21, 2020</a>
<a href="https://comm.homburger.ch/29/321/uploads/begleitschreiben-stellungnahme-vernehmlassungsvorlage-vag.pdf" target="_blank" rel="noopener">Begleitschreiben Stellungnahme Vernehmlassungsvorlage VAG</a>
<a href="https://comm.homburger.ch/29/321/uploads/detaillierte-kommentierung-vernehmlassungsvorlage-vag.pdf" target="_blank" rel="noopener">Detaillierte Kommentierung Vernehmlassungsvorlage VAG</a>
We are available to address any questions you may have in this respect.

Partial Revision of the Swiss Insurance Supervision Act is Drawing Closer

Die Eidgenössische Finanzmarktaufsicht FINMA (FINMA) hat am 9. Juni 2021 die überarbeitete <a href="https://comm.homburger.ch/e/gwks3qkjtqwbcnw/11178e85-6eb0-4e1d-a4ce-b22ed7b9d887" target="_blank" rel="noopener">Wegleitung für Gesuche betreffend die Einreichung von Tarifanpassungs- und Produktvorlagen in der Krankenzusatzversicherung</a> veröffentlicht.
Die überarbeitete Wegleitung sieht nebst verschiedenen Klarstellungen (z.B. Gesuchseinreichung via elektronische Erhebungsplattform EHP, Genehmigungspflicht von Änderungen der Rabattsysteme) auch einige Neuerungen vor. Die Neuerungen betreffen in erster Linie: (a) Festlegung einer konkreten Formel für die Ermittlung des technischen Ergebnisses, (b) Erfüllung von Kriterien vor Einreichung des Tarifgesuchs, wie z.B. Berücksichtigung der vertraglichen Grundlagen, geeignete Vertragsgrundlagen mit den Leistungserbringern und ein wirksames Kostencontrolling, (c) Vorgaben für die Anpassung von Versicherungsbedingungen, und (d) Auflistung der Angaben für Gesuche betreffend neue Krankenzusatzversicherungsprodukte.
Das wirksame Kostencontrolling ist ein wichtiges Anliegen der FINMA, wie sie in einer am 17. Dezember 2020 publizierten <a href="https://comm.homburger.ch/e/eo6ryi8m1mqwg/11178e85-6eb0-4e1d-a4ce-b22ed7b9d887" target="_blank" rel="noopener">Medienmitteilung</a> deutlich gemacht hatte. Die Versicherer müssen neu aufzeigen, dass sie über ein System verfügen, welches sicherstellt, dass:
<ul>
<li>die Leistungserbringer transparent und nachvollziehbare Abrechnungen erstellen;</li>
<li>nur Leistungen vergütet werden, die wegen Mehrleistungen auf Basis eines Quervergleichstests gerechtfertigt sind; und</li>
<li>die Verträge mit den Leistungserbringern den vorstehenden Kriterien entsprechen.</li>
</ul>
Mit Blick auf die Anpassung von Versicherungsbedingungen sieht die Wegleitung vor, dass für jede angepasste Bestimmung neu der Änderungszweck anzugeben ist. Ferner muss dargelegt werden, ob und in welchem Umfang die Anpassungen Auswirkungen auf den Schadenaufwand haben. Ebenfalls angegeben werden muss, ob die revidierten Versicherungsbedingungen nur für neue oder bestehende Versicherungsverträge gelten sollen. Ist Letzteres der Fall, muss ein Muster des Kundenanschreibens eingereicht sowie dargelegt werden, wie die Versicherungsnehmer um Zustimmung ersucht werden (stillschweigende Annahme kann nur ausnahmsweise angenommen und muss einlässlich begründet werden).
Das neu eingeführte Kapitel zu den neuen Produkten führt schliesslich auf, welche Angaben einzureichen sind. Dazu gehört auch der vorerwähnte Nachweis, dass geeignete Vertragsgrundlagen mit den Leistungserbringern und ein wirksames Kostencontrolling nachhaltig sichergestellt ist. Schliesslich behält sich die FINMA vor, die Einreichung weiterer notwendiger Angaben zu verlangen (z.B. Angaben zum Rückversicherungsprogramm).

Tarifanpassungs- und Produktvorlagen in der Krankenzusatzversicherung

Corporate / M&A

Technology and Digital Economy

Insurance

Capital Markets

Employment and Executive Compensation

Data Protection

wefox

On July 12, 2022, the Berlin-based insurtech wefox Holding AG announced that it has successfully reached an agreement for its Series D funding round, increasing its post-money valuation to USD 4.5 bn. The equity round was led by Mubadala Investment Company with participation from Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global.
wefox is a fully licensed digital insurance company that sells insurance through intermediaries and not directly to customers. wefox intends to use the funding for product development and to further expand across Europe and thereafter Asia and the US.
Homburger AG advises wefox Holding AG as Swiss counsel in this Series D funding round. The Homburger team comprises partner Andreas Müller (Corporate / M&amp;A; Technology and Digital Economy), lead associate Kevin M. Hubacher (Corporate / M&amp;A; Insurance), associates Oriana Schöni (Corporate / M&amp;A; Technology and Digital Economy) and Oliver Kneubühl (Corporate / M&amp;A), and junior associates Alexander Cochardt, Nicolas Wetzel and Michele Fazari (all Corporate / M&amp;A), counsel Eduard De Zordi (Capital Markets), partner Stefan Oesterhelt and associate Laetitia Fracheboud (both Tax), partner Balz Gross and associate Anissa Kern (both Employment and Executive Compensation), and associate Kirsten Wesiak-Schmidt (Data Protection).

Homburger advises wefox in its Series D funding round resulting in a post-money valuation of USD 4.5 bn

Vectivio

On June 14, VectivBio Holding AG (Nasdaq: VECT), a clinical-stage biopharmaceutical company pioneering novel transformational treatments for severe rare conditions, announced the pricing of a follow-on public offering of ordinary shares in the United States, raising gross proceeds of USD 30 m. In addition, VectivBio has agreed to a concurrent private placement of ordinary shares for gross proceeds of approximately USD 20 m.
The Homburger team includes partner Andreas Müller and lead associate Margrit Marti (both Capital Markets; Corporate / M&amp;A), associates Kevin Hubacher, Angela Oppliger and Oliver Kneubühl (all Corporate / M&amp;A), and partner Stefan Oesterhelt and associate Kevin Müller (both Tax).

Homburger advises VectivBio on its follow-on public offering and concurrent private placement

Financing and Investment Products

Financial Market Regulation

IP / IT

Healthcare / Life Sciences

On March 30, 2022, VectivBio, a clinical-stage biotechnology company developing transformational medicines for patients with serious rare diseases, announced that it has, inter alia, entered into a loan agreement with Kreos Capital, a leading global growth lender to life sciences and healthcare companies, granting VectivBio access to a up to USD 75 m flexible loan facility.
Homburger advised VectivBio with regard to all Swiss legal and tax aspects of the financing transaction.
The Homburger team included partner Andreas Müller (Corporate / M&amp;A, Life Sciences), lead associate Stefan Bindschedler (Financing and Investment Products), partners Jürg Frick (Financing and Investment Products), Stefan Oesterhelt (Tax) and Luca Dal Molin (IP / IT) as well as associates Kevin Hubacher, Angela Oppliger (both Corporate / M&amp;A) and Kevin Müller (Tax).

Kevin M.
Hubacher

Homburger advises wefox in its Series D funding round resulting in a post-money valuation of USD 4.5 bn

Homburger advises VectivBio on its follow-on public offering and concurrent private placement

Homburger advised VectivBio on up to USD 75 m loan facility with Kreos Capital

Partial Revision of the Swiss Insurance Supervision Act is Drawing Closer

Tarifanpassungs- und Produktvorlagen in der Krankenzusatzversicherung

Navigationsspielraum für innovative Geschäftsmodelle im revidierten Versicherungsaufsichtsgesetz

Are Insurers Permitted to Operate Innovative Business Models?

The Qing Dynasty’s Obligatory Case Review System and its Purposes: Supporting Shapiro’s Model of Courts

Join the Team

Kevin M. Hubacher

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Kevin M.Hubacher

Homburger advises wefox in its Series D funding round resulting in a post-money valuation of USD 4.5 bn

Homburger advises VectivBio on its follow-on public offering and concurrent private placement

Homburger advised VectivBio on up to USD 75 m loan facility with Kreos Capital

Partial Revision of the Swiss Insurance Supervision Act is Drawing Closer

Tarifanpassungs- und Produktvorlagen in der Krankenzusatzversicherung

Navigationsspielraum für innovative Geschäftsmodelle im revidierten Versicherungsaufsichtsgesetz

Are Insurers Permitted to Operate Innovative Business Models?

The Qing Dynasty’s Obligatory Case Review System and its Purposes: Supporting Shapiro’s Model of Courts

Join the Team

Kevin M. Hubacher

Career

Languages

Bar Registration

Teams

Kevin M.
Hubacher