“The regret is that we should have found it ourselves, which we didn’t despite all the audits and checks that we do. Remediation steps hadn’t been followed, which led to the enforcement proceeding, Chief Executive Officer Mario Greco
Zurich Insurance said on Monday that Swiss finance regulator FINMA has opened enforcement proceedings against the company after some Swiss customers were sold policies at lower prices than those agreed on with the regulator.
FINMA imposed a sales ban on some policies in Zurich’s corporate life and pensions unit in Switzerland, which can for now only serve existing customers, the group said.
It is unclear how long the proceedings, which were first reported by Swiss newspaper SonntagsBlick on Sunday, will last.
FINMA said it does not comment on individual cases but investigates possible financial market law violations and takes action if necessary.
The insurer let go of more than 12 employees amid enforcement proceedings by the Swiss regulator Finma, Chief Executive Officer Mario Greco said.
The regulator also imposed a sales ban on some policies in Zurich’s corporate life and pensions unit in Switzerland, Greco said in an interview Monday. The enforcement proceeding began after Swiss customers of the unit were sold policies — which are highly regulated — at lower prices than agreed upon with Finma, Greco said.
“The regret is that we should have found it ourselves, which we didn’t despite all the audits and checks that we do,” Greco said. Remediation steps hadn’t been followed, which led to the enforcement proceeding, he said.
The unit within the Swiss business can for the time being now only serve existing customers, and it’s unclear how long the probe will last. The unit generates annual profits of around 20 million Swiss francs ($24.4 million) a year, meaning the ban will have “no impact” on the group’s bottom line, he said.
A spokesperson for Finma declined to comment on the matter. The enforcement proceeding was first reported by Swiss newspaper Blick.
Finma has taken a more assertive stance with firms under its watch since the collapse of Credit Suisse in 2023. Another major Swiss institution, Julius Baer Group Ltd., is currently being prevented from conducting share buybacks amid an ongoing investigation by Finma into risk-control lapses related to the Signa real estate bankruptcy.
Zurich saw robust profitability in 2025, with net income up 17% in the year. The company has also been active in the takeover market, and is currently working on the integration of specialty insurer Beazley Plc after an $11 billion acquisition.
As part of its supervisory role, Finma said it continuously monitors compliance by banks, insurers and other firms with financial market laws, and intervenes where it deems necessary.
Enforcement proceedings are among a number of measures Finma can pursue to ensure that a license holder’s compliance is restored. The regulator frequently keeps the proceedings confidential.
Zurich shares fluctuated in Zurich on Monday, and were up 0.2% at 5:14 p.m.
Zurich is set to report second-quarter earnings on Aug. 6.