SWITZERLAND Law and Practice Contributed by: Jodok Wicki, Daniel Zemp, Fabienne von Moos and Doruntina Dembogaj, CMS von Erlach Partners Ltd
cyber-attacks in 2022–23 involved outsourced ser- vices, and FINMA has made clear that responsibil- ity cannot be delegated. Of interest for underwriters could be evidence of robust outsourcing governance, incident-response readiness and cross-border trans- fer compliance before placing cover. The FADP’s Article 24 breach-notification obligation is triggered where a data security breach poses a “likely high risk” to personality or fundamental rights. The high-risk assessment, Federal Data Protection and Information Commissioner (FDPIC) notification and data-subject communications become more impor- tant when handling cyber incidents and claims. With their high cost potential, forensic IT-investigation and notification costs are emerging as significant cover- age topics. 8.4 Data Centres Switzerland’s National Risk Analysis 2025 models scenarios of multi-day power outages and prolonged electricity shortages, both of which could cripple data centre operations. Operationally, the increasing complexity of ICT systems – including legacy compo- nents, software defects, and inadequate maintenance – heightens outage risks. The growing concentration on a small number of cloud and infrastructure provid- ers creates systemic vulnerability: an outage at one central provider could affect, for example, the entire Swiss financial market. Insurers face underwriting challenges in accurately pricing these interconnected risks. Traditional proper- ty and business interruption policies must be adapted to address cascade failures and contingent business interruption arising from third-party provider outages. Cyber insurance is evolving to cover data breach and ransomware scenarios, though war exclusion claus- es for state-sponsored attacks remain contentious. From a claims perspective, quantifying losses from prolonged outages – particularly consequential eco- nomic harm across multiple policyholders dependent on the same provider – poses substantial challenges. 8.5 Social Media Risk Social media addiction and the associated mental health harm – particularly among young people – are developing. Attempting to determine what could be
used as a basis for claims against social media plat- forms under Swiss law is highly problematic. From a tort law perspective, additional hurdles remain in proving adequate causation between platform use and psychological injury, and quantifying the damage suffered. 8.6 Next Generation Nuclear Swiss Starting Point Switzerland’s nuclear-liability framework is the ref- erence point for new technologies, although small modular reactors (SMRs) and fusion research remain in the early stages and have produced no domestic insurance case law. The Nuclear Energy Liability Act (KHG) imposes strict and unlimited operator liability, requires financial security including insurance, and gives injured persons a direct claim against the liability insurer. Demonstration projects and hybrid technolo- gies may not fit every aspect of that regime. Life-Cycle Exposure Risks arise across the following: • licensing; • construction overruns; • novel fuel or component supply chains; • serial design defects across modular units; • cyber vulnerabilities in control systems; • operational interruption; • decommissioning; • waste; and • long-latency injury. Losses may also involve conventional engineering or professional failures with a nuclear cause. Coverage Boundary The mandatory nuclear regime operates alongside nuclear exclusions in standard commercial policies and specialised nuclear pools. Construction, profes- sional liability and supply-chain risks require separate analysis during design, testing and commissioning. Disputes may concern whether technology falls within existing wording, whether the cause is nuclear or con- ventional, and how triggers and aggregation operate over long periods.
239 I NSURANCE L I T IGATI O N 2026
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