At its annual industry gathering, the Swiss Insurance Association (SIA) underscored the crucial societal role of insurance in Switzerland. In his speech, SIA President Stefan Mäder addressed a number of issues and trends that, in his view, hinder the provision of effective private-sector solutions.

«Being there in times of crisis for insured individuals and businesses is our promise – and has been our purpose for 200 years. As an association, we’ve known for 125 years how important it is to collectively stand up for sound conditions in our economically vital industry,» Mäder told around 300 industry representatives on Friday at the event held at The Circle at Zurich Airport.

(Image: SVV/Stefan Baumgartner)

«Blatten is in our minds – whether we like it or not,» Mäder said, referring to the massive rockslide in the Lötschental on May 28. Together with the resulting flooding, it caused widespread destruction. «The village in the Lötschental no longer exists.» It wasn’t only significant property damage; tragically, the rockslide also claimed a human life.

Swift and Unbureaucratic Support

The Swiss Insurance Association promptly released several hundred million francs in claims payments – covering insured homes, household contents, and vehicles. «That’s a lot of money – and even more suffering.»

Private insurers have assured the affected residents of Blatten of fast and uncomplicated support. «We are doing our best to help quickly and with as little red tape as possible – and we are present on the ground.»

Being there for insured people and businesses in times of need is «our promise and our purpose,» reiterated the SIA President.

The Swiss Insurance Association was founded 125 years ago during a time when the country was transitioning from an agrarian to an industrial economy. The need to insure against risks was growing. «Even then, it was clear: economic progress needs security. And that security must be more than just a feeling – it requires trust, rules, and reliable partners.»

«Not sure if Finma reorganization will benefit insurers»

The same still holds true today. In his speech, Mäder voiced concerns about certain regulatory trends: «It is important to have sound and strong regulation – but there must not be overregulation.»

Insurers should not be regulated like banks, he said. «There is no such thing as an insurance run, and Swiss insurers are very stable and highly solvent.»

What is needed, according to Mäder, is regulation that is proportionate, reflects the diversity of the financial sector, and is based on a mindset of personal responsibility rather than state intervention. «I am not sure whether the reorganization of Finma will actually help the insurance sector,» he added.

Courage Needed for Pension Reform

Another area where courage and responsibility are needed is pension provision. The second pillar and third pillar (occupational and private pensions) relieve the state, Mäder noted. He criticized the federal government's planned tax reform package: «The federal government has a spending problem, not a revenue problem.»

He clearly rejected the idea of increasing taxes on capital withdrawals: «People who save for decades must be able to count on stable rules. The second and third pillars promote personal responsibility – this must not be weakened by symbolic political interference.»

«The rules of the game must not be changed mid-game. We hope this provision will be removed from the reform package.»

According to Mäder, pension reform is also a question of intergenerational fairness – and solving it will require both courage and a sense of responsibility.

Strengthening Market Solutions

To ensure effective solutions, the role of the market must be reinforced, Mäder emphasized. He sees creeping tendencies toward nationalization, citing, for example, the growing role of cantonal building insurers.

«We provide security not just for our customers, but for society as a whole.»