FINMA publishes completely revised circular on liquidity for insurers
The Swiss Financial Market Supervisory Authority FINMA is today
publishing the completely revised FINMA Circular “Liquidity –
insurers” (FINMA Circ. 25/3). It is thus adapting its practice to the
revised Insurance Supervision Ordinance and enhancing its supervisory
practice on liquidity for insurers.
The Federal Council
revised the Insurance Supervision Ordinance (ISO) in 2023. In this
context, it introduced annual reporting by insurers to FINMA on
liquidity planning. These amendments took effect on 1 January 2024. At
the same time, liquidity has also come under greater international
scrutiny in insurance supervision in recent years.
In light of
this, FINMA has completely revised its Circular 2013/5 “Liquidity –
insurers”. It is thereby enhancing its supervisory practice on
liquidity management and liquidity risk management and organising it
into six subject areas based on principles: governance, liquidity
management and liquidity planning, liquidity reserve, liquidity risk
management, liquidity controlling and liquidity monitoring as well as
the contingency funding plan. FINMA conducted a public consultation on
the fully revised circular.
FINMA Circular 2025/3 “Liquidity –
insurers” comes into force on 1 January 2025.