Navigating regulatory hurdles for insurance intermediaries

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  • Insight
  • 4 minute read
  • 31/07/25
Thomas Schwyter

Thomas Schwyter

Director, Legal, PwC Switzerland

Insurance intermediaries operate within a complex regulatory framework, particularly when handling client funds such as insurance premiums. This responsibility demands compliance with strict regulations while maintaining operational efficiency. Under certain circumstances, anti-money laundering legislation and other financial market regulations may also apply to insurance intermediaries, depending on the specific business model, which must be thoroughly analysed and clarified. This blog post highlights the major challenges facing insurance intermediaries. At the end, we have included a short self-assessment designed to provide you with an initial evaluation.

Navigating AML compliance: key challenges for insurance intermediaries

Insurance intermediaries in Switzerland face significant challenges in complying with anti-money laundering regulations compliance. Particularly complex is handling transfer services for insurance premium payments, which are processed via an account in the name of the insurance intermediary. In practice, insurance intermediaries often provide additional services by collecting insurance premiums from policyholders and forwarding them to the (re)insurance company. Simply acting as an insurance intermediary – i.e. brokering of insurance contracts – does not trigger anti-money laundering obligations, but providing transfer services such as the one described above does raise compliance concerns. 

Although the ordinance to the Anti-Money Laundering Act lists several exemptions, distinguishing these in specific cases can be challenging. These exemptions necessitate a thorough analysis of the business setup. Therefore, seeking regulatory guidance is advisable, as it may result in changes to business operations, potentially affecting both internal procedures and external agreements.

The challenges of accepting deposits under banking regulations

In the realm of financial services, accepting deposits from the public can entail significant regulatory challenges under the Banking Act and its ordinances. According to the understanding of FINMA, essentially all liabilities are considered deposits unless clearly exempted by specific criteria. Insurance premiums and other payments held on internal accounts to be forwarded (such as claims for damages) by the insurance intermediary are considered deposits since they ultimately belong to the insurance company or the policyholders. 

To be exempt from the Banking Act, at least one specified exemption in the Banking Ordinance must apply, or the activity of the insurance intermediary must not constitute a commercial activity. Therefore, insurance intermediaries must have a thorough understanding of their business model and be able to accurately assess the implications of the legal framework on it.

Our self-assessment and services

Regulatory challenges demand ongoing attention and adaptation from insurance intermediaries. Our self-assessment addresses the most important criteria outlined above. Once completed, we are happy to reach out to you for further guidance. Regardless of this, we are always available to answer any questions you may have.

Are you compliant with anti-money laundering and banking regulations?

Contact us

Thomas Schwyter

Director, Legal, PwC Switzerland

+41 58 792 24 14

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Michael Boppart

Manager, Legal, PwC Switzerland

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