National insurance for earthquake damage

Insurances | Loyco
27 Oct, 2021

Last Wednesday, the federal city of Bern accepted a motion from the Chamber of cantons proposing insurance for damage caused by earthquakes. Read on for a brief overview of the insurance proposal and its system of contingent commitments, as well as various resources to find out more.

According to the Service Sismologique Suisse, earthquakes are the natural danger that can cause the most damage in this country. However, until now, all insurance proposals at national level for damage caused by earthquakes have been refused by the Federal Council.
Last Wednesday, by 108 votes to 76, the People’s Chamber supported the new solution proposed by the Chamber of cantons which aims to set up national insurance for earthquake damage, including a system of contingent commitments. According to this motion, the damage caused by these natural disasters should be jointly supported at the national level.


A system of contingent commitments

The motion proposes a new system of contingent commitments. Unlike traditional insurance, which is usually subject to an early premium, a backdated one-off premium would be payable by owners living in the affected area after the disaster. Owners would therefore be exempt from an annual premium. The amount and terms of the contingent commitments payable by owners are yet to be defined, as is the exact definition of the circle of contributors. And a further question remains as to the definition of the affected area.


Find out more about the plans

Earthquakes: the Nation supports the damage insurance project “, in French, by Le Nouvelliste.
Earthquakes: Parliament in favour of national insurance“, in French, by Le Nouvelliste.
Earthquakes: Let’s protect the population“, in French, by 24 Heures.

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