Financing building damage caused by earthquakes
Severe earthquakes are among the rare but most significant risks to which Switzerland is exposed. There is no compulsory nationwide earthquake insurance in Switzerland. Currently, around 15 per cent of buildings are insured against earthquake damage. In future, building owners may be required by the federal government to jointly finance building damage caused by earthquakes.
In December 2023, the Federal Council submitted a proposal for the financing of building damage caused by earthquakes for consultation. In doing so, it fulfilled a corresponding motion by Parliament. According to the consultation draft, it should, on the one hand, be given the authority to issue nationwide regulations for the protection of persons and property in the event of an earthquake. On the other hand, the Federal Council should be authorised to levy a special-purpose contribution of up to 0.7 per cent of the building insurance sum from building owners in Switzerland in the event of an earthquake causing damage. This would make around CHF 22 billion available quickly to cover damage in the event of an earthquake and eliminate the need to pay an annual premium.
On 13 December 2024, the Federal Council adopted a dispatch on the financing of building damage caused by earthquakes. The bill will come into force in 2028 at the earliest.
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Federal Council adopts dispatch on financing for earthquake damage to buildings
13.12.2024