FINMA imposed a sales ban on some policies in Zurich's corporate life and pensions unit in Switzerland, which can for now only serve existing customers, the group said.
It is unclear how long the proceedings, which were first reported by Swiss newspaper SonntagsBlick on Sunday, will last.
FINMA said it does not comment on individual cases but investigates possible financial market law violations and takes action if necessary.
Zurich Insurance's CEO Mario Greco told news agency Bloomberg the ban will have no impact on the group's bottom line. The firm is, however, laying off more than 12 employees following the investigations, he said.
