Financing earthquake damage to buildings
Severe earthquakes are among the rare but greatest risks to which Switzerland is exposed. There is no nationwide compulsory earthquake insurance in Switzerland. Currently, around 15 per cent of buildings are insured against earthquake damage. It should in the future be possible for the federal government to oblige building owners to jointly finance earthquake damage to buildings.
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 from Parliament. According to the Federal Council's proposal put out to consultation, it should, on the one hand, be given the authority to issue regulations throughout Switzerland to protect On the other hand, the Federal Council should be authorised to levy a special contribution of up to 0.7 per cent of the building insurance sum from building owners in Switzerland in the event of an earthquake that causes damage. This would provide around CHF 22 billion to cover damage in the event of an earthquake and the payment of an annual premium would not be necessary.
The majority of the consultation participants welcomed the Federal Council's proposal and recognised that there is a need for action in the national public interest. The Federal Council's proposal to levy a contribution from building owners to cover the costs in the event of an earthquake resulting in damage was approved by a majority in the consultation, which corresponds to the core concern of the motion. However, several cantons were opposed to the idea of the Federal Council being given new powers in relation to earthquake protection. The Federal Council took this criticism on board and refrained from doing so.
The Federal Council has instructed the Federal Department of Finance FDF to prepare a dispatch on the financing of building damage caused by earthquakes by the end of 2024, taking into