After spreading from Wuhan to Switzerland in less than three months, the COVID-19 crisis is creating major challenges for Swiss insurers, particularly with regard to whether insurance coverage for the effects of an epidemic also apply to a pandemic.

Right of recourse in insurance law: end of Gini/Durlemann practice. The Supreme Court recently abandoned its long-standing practice of restricting recourse under the Gini/Durlemann doctrine, which was first adopted in 1954.

In a recent decision, the Federal Supreme Court considered whether insurers are bound to contracts if an insured party submits a fraudulent claim (Decision 4A_20/2018 of 29 May 2018).

Supreme Court: scope of full and final settlement clause in insurance matters. The Supreme Court recently dealt with the scope of a full and final settlement clause in an insurance matter (A_23/2107, December 21 2017).

Is surveillance of insured parties lawful? In case of doubt regarding eligibility for benefits, insurers in Switzerland (particularly accident and disability insurers) have a long record of hiring investigators to conduct surveillance in order to prevent abuse and to adjust or reclaim benefits if the doubt proves founded.

Partial revision of Federal Act on Insurance Contracts. In 2013 the Federal Parliament rejected a bill for a total revision of the Federal Act on Insurance Contracts, with an order to the Federal Council to elaborate a partial revision on selected subjects. The Federal Council drafted an amended bill and recently initiated consultation proceedings on the proposals.