To be successful in running a company from Switzerland, it is necessary to have a strong plan in place for managing risk. There are many different types of risks that businesses in Zurich, Geneva, and Zug face including changing cross-border compliance standards, geopolitical issues that alter supply chains, and cyber exposure. Off-the-shelf insurance policies are not sufficient anymore for companies doing business in Switzerland today; rather, they need to develop tailored corporate safety nets to ensure that they can remain economically viable through all of these different challenges.

One of the key factors driving leaders at Swiss corporations to look for customized solutions is the instability of the global marketplace today. An important consideration when establishing and managing corporate liabilities in Switzerland is how to balance the security being provided locally with the reach of your corporation internationally. Many mid-sized and large companies operate under what has been termed “standard financial roadmaps”; generally speaking, this type of financial plan does not account for the potential operational liabilities that may occur as a result of changing conditions.

Traditional financial consulting firms provide companies with the framework needed for managing liquidity, capital structures, and structural corporate investments; however, these frameworks must be integrated seamlessly with proactive risk-transfer mechanisms if companies wish to manage their business liabilities effectively. When commercial risk specialists work collaboratively with financial consulting teams to align the realities of their client's balance sheet to the risk transfer solution, the result is a strategic fit that allows companies to avoid a potential disruption of long-term capital allocation or depletion of liquid reserves as a result of a sudden crisis event.
The lines separating personal wealth maintenance from the succession of businesses are becoming less distinct for both large Swiss family-owned and elite business owners. PPLI Insurance (Private Placement Life Insurance) is coming up more frequently in discussing a holistic approach to maintaining stability within a business over time. In addition to providing the long-term private asset segregation and tax-deferral characteristics generally associated with PPLI, some business owners have used PPLI as an advanced method of managing leadership transitions through the isolation of their private holdings from the risks associated with running their businesses. In turn, establishing this separation and protection for their business owners legacy, will also allow them to continue to maintain the liquidity needed to operate.

While many large and small global firms must evolve to stay ahead of ever-changing global standards and regulations, they must develop unique and effective corporate structures that are both agile and comprehensive. For all of the risk management, legal, and financial professionals participating in our forum - either on an active or passive level - what are the most significant structural challenges you face when developing custom insurance products for Swiss firms that have global operations?