The Danish Guarantee Fund for Non-life Insurers must have a capital of DKK 500 million. At least DKK 200 million must consist of contributions from insurance companies, which writes industrial injury insurances in Denmark.
Contributions concerning consumer insurance
The Danish Financial Supervisory Authority (DFSA) annually determines the insurance companies’ contributions to the Danish Guarantee Fund for Non-life Insurers (the Danish Fund). The contributions must consist of the sum of the amount per policy within the following consumer insurance policies taken out in Denmark with risks in Denmark:
- Motorforsikringer (motor liability insurance)
- Familieforsikringer (household contents insurance)
- Husejerforsikringer (property insurance)
- Sundhedsforsikringer (health insurance)
- Ejerskifteforsikringer(latent defect insurance - change-of-ownership)
- Sælgeransvarsforsikring (property sellers liability insurance) and
- Byggeskadeforsikringer (structural warranty insurance – new build)
In 2021 the contribution is fixed at DKK 40 per police.
The contributions regarding 2022 is expected to be announced around 1 November 2021.
Contributions concerning industrial injury insurance
The DFSA annually determines the insurance companies’ contributions to the Danish Fund. The contributions must consist of the sum of the amount per insured under an industrial injury insurance taken out in Denmark with risks in Denmark.
The contributions regarding 2022 is expected to be announced around the 1 November 2021.
For both consumer insurances and industrial injury insurances
For both consumer insurances and industrial injury insurances applies that the DFSA once a year announces the size of the amount per policy/insured under an industrial injury insurance policy, for which the insurance companies must use when calculating contributions to the Danish Fund.
The DFSA must make the announcement public, at latest 6 months before the insurance companies must pay the contributions to the Danish Fund. Concerning contributions which must be paid to the Danish Fund on 1 May, the announcement from the DFSA must be published 1 November of the previous year at latest.
The insurance companies shall pay contributions to the Danish Fund on the 1 May, 1 August, 1 November and 1 February in relation to the industrial injury insurances, which the insurance company has taken out or renewed, respectively in the 1st, 2nd, 3rd and 4th quarters. The insurance companies must pay the first contribution to the Danish Fund on the first date from the expiry of the six months from which the Danish FSA has notified the amount of the contribution for the following year.
Payment of the contribution to the Danish Fund must be made via the Danish Guarantee Fund's system by a quarterly reporting.
Each quarter, all members must report via the Danish Fund's reporting system the number of policies/insured under an industrial injury insurance policy, of the types of liability insurance the company has taken out during the period.