Questions and answers about membership
Find answers to frequently asked questions about membership of the Danish Guarantee Fund. Here you can find more information about membership requirements, registration, and contributions to the Fund.
Questions and answers
The following insurance companies must be a member of and contribute to the Guarantee Fund:
All non-life insurance companies based in Denmark.
Non-life insurance companies based in a country within the EU/EEA that has been notified by the Danish Financial Supervisory Authority to carry out insurance business in Denmark by establishment of a branch or by freedom to provide services.
All life insurance companies based in Denmark with permission to carry out industrial injury insurance business.
Life insurance companies based in a country within the EU/EEA that has been notified by the Danish Financial Supervisory Authority to carry out industrial injury insurance business in Denmark by establishment of a branch or by freedom to provide services.
Please note that companies mentioned in dot 2, who only carry out motor liability insurance, are not obligated to register as a member or pay contribution to the Danish Guarantee Fund for Non-Life Insurers.
See the Guarantee Fund's list of members here.
In 2018 the Danish Parliament adopted an amendment to ‘The Guarantee Fund for Non-life Insurance Companies Act’, which makes it compulsory for non-life insurance companies which have their head office in the EU/EEA to become a member of the Guarantee Fund, if they want to carry out insurance business either by establishment of a branch or by freedom to provide services in Denmark.
This means that as of 1 January 2019 membership of the Guarantee Fund is a pre-requisite to carry out insurance business in Denmark for non-life insurance companies.
In 2023 the Danish Parliament adopted an amendment to "The Guarantee Fund for Non-life Insurance Companies Act", which makes it compulsory for life insurance companies with their head office in the EU/EEA to become a member of the Guarantee Fund, if they want to carry out industrial injury insurance business in Denmark either by establishment of a branch or by freedom to provide services.
This means that as of 1 July 2023 membership of the Guarantee Fund is a pre-requisite to carry out industrial injury business in Denmark for life insurance companies.
Danish non-life insurance companies established after 1 July 2017 must pay a one-time contribution to the Guarantee Fund no later than 4 weeks after the company or branch has been granted the Danish Financial Supervisory Authority's permission to carry out insurance business in Denmark. The one-time contribution to the Guarantee Fund is set at DKK 100,000.
Non-life insurance companies with their head office within the EU/EEA that has been granted the Danish Financial Supervisory Authority's permission to carry out insurance business in Denmark either by establishment of a branch or by freedom to provide services.
Danish life insurance companies with permission to carry out industrial injury insurance business.
Life insurance companies with their head office within the EU/EEA that as of 1 July 2023 has been granted the Danish Financial Supervisory Authority's permission to carry out industrial injury insurance business in Denmark either by establishment of a branch or by freedom to provide services.
Non-life insurance companies with membership obligations to the Guarantee Fund, which have received the Danish Financial Supervisory Authority's permission to carry out insurance business in Denmark after 1 of January 2019, must pay a one-time contribution of DKK 100,000.
Life insurance companies with membership obligations to the Guarantee Fund, which have received the Danish Financial Supervisory Authority's permission to carry out industrial injury insurance business in Denmark after 1 of July 2023, must pay a one-time contribution of DKK 100,000.
Payment of entrance fee is settled upon registration in the Guarantee Fund, via the Guarantee Fund's IT system. Insurance companies can access the IT system by filling out the ‘membership inquiry’ on this page.
All members of the Guarantee Fund, who writes the contribution-based insurance types in Denmark, must pay ongoing contributions to the Guarantee Fund as long as the Danish Financial Supervisory Authority orders the Guarantee Fund to collect contributions.
The insurance companies can choose to pay the contributions themselves or it can be imposed to the policyholder on the individual policy.
The amount of the contribution will not be reimbursed to the policyholder, if the insurance terminates before time.
The Danish Financial Supervisory Authority fixes the insurance companies' yearly contributions to the Guarantee Fund.
You can read more about ongoing contributions here.
The ongoing contributions are paid through the Guarantee Fund's IT system, in which all members must be registered.
Members pay the contribution to the Guarantee Fund every quarter, for the contribution-based policies that the insurance company has written or renewed during the given quarter.
To register in the IT system, please go to this site.
Motorforsikring (Motor isurance)
The insurance is also referred to as auto insurance, motor vehicle insurance and car insurance. It is the compulsory third-party liability insurance for “motor vehicles”, cf. the definition in Section 2(1), no. 15 of the Danish Road Traffic Act.
Upon request, the Danish Guarantee Fund has assessed that a Class 45 moped is to be regarded as a motor vehicle within the meaning of the Danish Road Traffic Act. A Class 45 moped is therefore subject to the contribution requirement.
The following, for example, are not subject to the contribution requirement: trailer or caravan insurance and insurance for tractors.
Familieforsikring (household contents insurance)
The insurance is also referred to as contents insurance, contents and liability insurance, home insurance, household insurance and basic family insurance. The insurance covers damage to household contents and personal belongings if they are damaged or lost as a result of theft, fire, storm, etc.
The insurance also includes liability insurance covering liability for damages incurred by members of the household in their capacity as private individuals. It also includes legal expenses insurance covering costs associated with a range of private legal proceedings in which members of the household may become involved.
The fact that, for example, travel insurance may be added as optional coverage under a Familieforsikring (household contents insurance) does not mean that travel insurance taken out as a separate policy is subject to the contribution requirement.
Husejerforsikring (property insurance)
The insurance is also referred to as house insurance, villa insurance and detached house insurance. It covers damage to a permanent residence caused by fire, storm, water, etc., and typically also covers other sudden damage.
The insurance often also includes coverage for insect and fungal damage, glass and sanitary fixtures, as well as damage to service pipes and concealed pipes. In some cases, these types of coverage are optional. The insurance also includes homeowners’ liability insurance and legal expenses insurance.
The following are not subject to the contribution requirement: holiday home insurance, allotment garden house insurance and similar types of insurance. No contribution is payable for property and building insurance covering rental properties.
Sundhedsforsikring (health insurance)
The insurance covers expenses for examinations, treatment, rehabilitation, etc., as well as treatment provided at private hospitals and by private healthcare practitioners and medical specialists.
Accident and sickness insurance is therefore not subject to the contribution requirement.
Byggeskadeforsikringer (structural warranty insurance – new build)
A Byggeskadeforsikring (structural warranty insurance – new build) is insurance taken out by the contractor in connection with the construction of a new residential building or substantial renovation of an existing residential building, providing protection for the owner of the building.
No contribution is payable for Byggeskadeforsikringer (structural warranty insurance – new build) covering rental properties.
Ejerskifteforsikringer (latent defect insurance - change-of-ownership) and Sælgeransvarsforsikring (property sellers liability insurance)
Both Ejerskifteforsikringer (latent defect insurance - change-of-ownership) and Sælgeransvarsforsikring (property sellers liability insurance) are subject to the contribution requirement.
Contributions concerning industrial injury insurance, including violence injury insurance
Insurance companies’ contributions to the Guarantee Fund consist of an amount payable to the Guarantee Fund per insured person under an industrial injury insurance policy, whether or not violence injury insurance is included as an extension of the industrial injury insurance policy, as well as per insured person under a separately written violence injury insurance policy.
Accordingly, the same contribution obligation applies to industrial injury insurance policies regardless of whether the policy is extended to include violence injury insurance, whereas separately written violence injury insurance policies are also subject to a contribution.
See questions and answers about industrial injury insurance here.
General
Please note that, with the exception of Byggeskadeforsikringer (structural warranty insurance – new build), only consumer insurance policies (private insurance policies) are subject to the contribution requirement.
In Executive Order No. 511 of 24 May 2024 on contributions to the Danish Guarantee Fund for Non-Life Insurers, Section 4(2) has been amended to specify that if a non-life insurance company includes several of the types of insurance referred to in subsection 1 under the same policy, or if several persons or entities are covered by the same policy, the non-life insurance company must pay a fixed amount per type of insurance included in the policy.
In the view of the Danish Guarantee Fund, this amendment means that policies containing, for example, both a Husejerforsikring (property insurance) and a Familieforsikring (household contents insurance) are subject to two contributions to the Danish Guarantee Fund.
The provision also states that where several persons or entities are covered under the same policy, a contribution is payable per type of insurance. In the view of the Danish Guarantee Fund, this means that if, for example, several cars are covered under the same policy, meaning the same type of insurance, only one contribution is payable.
The insurance companies must along with the submission of the financial statement submit a statement from the management and/or a state-authorized or registered public accountant to the Danish Guarantee Fund confirming that the paid contributions are correctly calculated.
This applies only to insurance companies that report annual contributions exceeding DKK 50,000, cf. Section 3(7) of the Consolidated Act on a Guarantee Fund for Non-Life Insurance Companies.
Companies whose annual contribution does not exceed DKK 50,000 are only required to submit a statement from the company’s responsible management.
No. It is evident from section 4(1) in the Guarantee Fund for Non-life Insurers’ consolidation Act that a policyholder, until the assets of the Danish Guarantee Fund constitute DKK 600 million, cannot cancel an insurance contract due to the extra charge to the premium which only use is to pay the contribution to the Danish Guarantee Fund.
No.
According to the Guarantee Fund Act, only insurance companies who are registered within the EU/EEA can be members of the Guarantee Fund.
No.
Only if the non-life insurance company’s authorisation to carry on non-life insurance business in Denmark is terminated will its membership of the Danish Guarantee Fund also cease.
The same applies to life insurance companies.
If a life insurance company’s authorisation to carry on industrial injury insurance business in Denmark is terminated, its membership of the Danish Guarantee Fund will also cease.
The entrance fee is not refunded upon termination of membership.
Yes. Executive Order for Greenland on Contributions to the Danish Guarantee Fund for Non-Life Insurers (No. 862 of 19 June 2024) entered into force on 1 July 2024.
The Executive Order means that insurance policies taken out in Greenland covering risks situated in Greenland are subject to contributions on the same basis as Danish insurance policies.
From 1 January 2025, the following types of insurance will be subject to contributions to the Danish Guarantee Fund:
Motorkaskoforsikringer (motor hull insurance)
Familieforsikringer (household contents insurance)
Husejerforsikringer (property insurance)
Sundhedsforsikringer (health insurance)
Ejerskifteforsikringer (latent defect insurance - change-of-ownership)
Sælgeransvarsforsikringer (property sellers liability insurance)
Byggeskadeforsikringer (structural warranty insurance – new build)
In addition, motor liability insurance and industrial injury insurance will also be subject to contributions to the Danish Guarantee Fund.
Please note that for motor insurance covering risks situated in Greenland, the definition in Section 2 of the Executive Order on the Road Traffic Act for Greenland applies:
“2. Motor-powered vehicle: A vehicle equipped with a motor as its means of propulsion. Motor-powered vehicles are divided into motor vehicles, tractors, motorised equipment, mopeds and snowmobiles.”
Accordingly, contributions must be paid for compulsory (consumer) liability insurance as well as comprehensive insurance covering cars, motorcycles, tractors, motorised equipment and mopeds, including Class 45 mopeds, speed pedelecs and snowmobiles.
Trailer and caravan insurance continues not to be subject to the contribution requirement.