Cash in a box catches on in Switzerland

Washington

IT is a sign that the world is getting used to negative interest rates when what once seemed bizarre starts looking like the norm.

Consider Switzerland, where more companies are taking out insurance policies to protect their cash hoards from theft or damage. "Because of the low interest rate level, we note increasing demand for insurance solutions for the storage of cash," said Philipp Surholt at Zurich Insurance Group, among underwriters reporting a surge in such requests. "We're seeing demand for coverage for sums ranging from 100 million to 500 million francs (S$696 million)."

The Swiss National Bank (SNB) imposed sub-zero rates in early 2015, effectively charging banks for excess deposits. Many lenders including UBS Group and Credit Suisse Group have passed on at least some of th…