Zurich lays off over a dozen employees following FINMA proceedings
Keystone-SDA
The Zurich Insurance Group has dismissed more than a dozen employees in connection with enforcement proceedings by the Swiss Financial Market Supervisory Authority (FINMA) that have come to light.
This was stated by Group CEO Mario Greco in an interview with the US news agency Bloomberg published on Monday evening.
According to Greco, FINMA has imposed a partial sales ban on certain policies offered by the Swiss unit specialising in corporate life insurance and pension solutions. He explained that the proceedings were triggered by the fact that customers had been offered products at lower prices than those agreed with FINMA.
Greco admitted that the error should have been detected internally through internal controls and audits.
For the time being, the unit in question is only permitted to serve existing customers. It is unclear how long the proceedings will take. According to Greco, the business unit generates an annual profit of around CHF20 million ($24.4 million). He therefore does not expect this to have any impact on the group’s results.
The SonntagsBlick had previously reported on the proceedings.
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Translated from German, reviewed by an English Department journalist.
