Insurance Supervision Act (ISA)

What is the ISA?

The ISA is the Federal Act of 17 December 2004 on the Supervision of Insurance Companies (in German: Versicherungsaufsichtsgesetz, VAG). It has been in force since 1 January 2006 and governs federal supervision of private insurance companies and of insurance intermediaries (Art. 1 para. 1 ISA). Its main purpose is to protect insured persons against the insolvency risks of insurers and against abuse (Art. 1 para. 2 ISA). The supervisory authority is FINMA.

In health insurance, the ISA concerns supplementary insurance, for example semi-private or private supplementary hospital insurance, supplementary outpatient insurance or dental insurance. These contracts are subject to the Insurance Contract Act (ICA), and supervision of the companies to the ISA. Basic health insurance under the Federal Health Insurance Act (KVG) is regulated differently: there, the FOPH supervises the health insurers under the Health Insurance Supervision Act (KVAG).

For you, this means that different laws and different supervisory authorities apply to your basic health insurance and your supplementary insurance, even if both policies bear the same name.

The ISA has been revised several times. The revision of 18.03.2022, in force since 01.01.2024, added new rules for intermediaries, among other things on conflicts of interest and the surrender of documents. The rules on intermediary activity in supplementary health insurance (Art. 31a ISA) have applied in their current form since 01.09.2024.

How it works

Licence and business plan. An insurance company needs a licence from FINMA to operate (Art. 3 ISA). The business plan also includes the rates and general terms and conditions of insurance supplementing social health insurance (Art. 4 para. 2 let. r ISA). FINMA must approve changes to these before they are implemented (Art. 5 para. 1 ISA).

Review of rates. When approving rates, FINMA checks whether the premiums secure the company’s solvency and protect insured persons against abuse (Art. 38 para. 1 ISA). A premium increase in your supplementary hospital insurance is therefore not simply a decision by the health insurer; it requires approval.

Solvency. Insurers must have sufficient solvency: the risk-bearing capital must be at least as large as the target capital (Art. 9 ISA).

Intermediaries. The ISA distinguishes between tied and untied intermediaries (Art. 40 ISA). Untied intermediaries have a fiduciary relationship with you and act in your interest; they must be entered in FINMA’s register (Art. 41 ISA). All intermediaries must inform you before the contract is concluded of their name and address, whether they work on a tied or untied basis, their training, liability for errors and how your data is processed (Art. 45 ISA). Untied intermediaries may only accept commissions if they have first expressly informed you of their type and amount (Art. 45b ISA). More on this under Intermediary commission.

Industry rules for supplementary insurance. Insurers can conclude an agreement on telephone marketing, training, intermediary remuneration and advice records. The Federal Council can declare parts of it generally binding if insurers accounting for at least 66 % of premiums apply for this (Art. 31a ISA).

Documents. You are entitled at any time to a copy of your file and of all documents concerning you that the insurer or intermediary has drawn up (Art. 80 ISA). On written request, they must send you the copy free of charge within 30 days (Art. 81 ISA).

Legal basis

The ISA has the number SR 961.01. The implementing provisions are in the Insurance Supervision Ordinance (ISO, SR 961.011). For health insurance, these articles are the most important:

• Art. 1 and 2 ISA: Purpose and scope. Insurance companies and intermediaries are subject to supervision; insurers are not subject to it to the extent that they are subject to special federal supervision (Art. 2 para. 2 let. b ISA).
• Art. 3–5 ISA: Licence, business plan, changes requiring approval, including rates and general terms and conditions of supplementary health insurance.
• Art. 31a and 38 ISA: Industry rules for intermediaries in supplementary health insurance and review of rates. If an insurer disregards a generally binding rule, FINMA can refuse to approve its rates (Art. 38 para. 2 ISA).
• Art. 40–45b ISA: Definition, registration, training, duty to provide information, conflicts of interest and disclosure of remuneration.
• Art. 46 ISA: Tasks of FINMA, including protecting insured persons against abuse by insurers and intermediaries.
• Art. 80–81 ISA: Surrender of documents to insured persons.

Example: advice on supplementary hospital insurance

Nadia is 33 years old and in 2026 receives advice from an intermediary on semi-private supplementary hospital insurance. Under the ISA, the intermediary must tell her the following before the application:

The operator of this platform is itself entered in the FINMA register as an untied intermediary. What this means for you and how it is remunerated is set out under Disclosure and in the intermediary information.

What this means for you

• Distinguish between basic and supplementary insurance. The FOPH is responsible for basic health insurance, FINMA for supplementary insurance. Disputes over supplementary insurance go before a civil court.
• Ask about the status. A tied intermediary works for specific insurers; an untied one must act in your interest and be registered.
• Request disclosure. Untied intermediaries must disclose commissions to you in advance and, on request, also the amounts actually received (Art. 45b para. 3 ISA).
• Use your right to documents. You receive the advice record and the application free of charge on request.

You can find the basic health insurers and their key figures under Health insurers, and the premiums for your municipality in the premium calculator.

Common mistakes

• Confusing the ISA and the ICA. The ICA governs your contract, the ISA the supervision of insurers and intermediaries.
• Believing FINMA is responsible for basic health insurance. There, the FOPH supervises under the KVAG.
• Assuming all advice is independent. Only untied intermediaries have a fiduciary relationship with you. Tied intermediaries must disclose who they work for.
• Doing without the documents. Without a copy of the application and the advice record, it is difficult to prove later what was discussed.