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Questions & answers about membership to the Danish Guarantee Fund

Questions & answers


  • Who has to be members of the Guarantee Fund?

    All insurance companies in EU/EEA that have the Danish Financial Supervisory Authority's notification to carry out insurance activities in Denmark is, as of 1 January 2019, obligated to be a member of the Danish Guarantee Fund. All new members of the Guarantee Fund has to pay an entrance fee. This one-time entrance fee to the Guarantee Fund must be paid to the Guarantee Fund no later than 1 March, 2019.

  • Why do insurance companies in other EU/EEA countries have to be members of the Fund?

    The Danish Parliament has 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 EU/EEA to become 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 January 1, 2019 membership of the Guarantee Fund is a pre-requisite to carry out insurance business in Denmark, either by establishment of a branch or by freedom to provide services.

  • How much is the entrance fee to enroll in the Fund?

    The entrance fee to the Fund is fixed at DKK 50 per police for the following private line insurance policies:

    1) Motorforsikringer (motor liability insurance)
    2) Familieforsikringer (household contents insurance)
    3) Husejerforsikringer (property insurance)
    4) Sundhedsforsirkinger (health insurance)
    5) Ejerskifteforsikringer (latent defect insurance - change-of ownership)
    6) Sælgeransvarsforsikring (property sellers liability insurance) and
    7) Byggeskadeforsikringer (structual warranty insurance – new build)

    Notwithstanding the above, the contribution can however not be less than DKK 100,000.

  • When is deadline to enroll and pay entrance fee to the Fund?

    According to section 5 of ‘The Guarantee Fund for Non-life Insurance Companies Act’ all insurance companies with their head office in EU/EEA that are notified to carry out insurance business in Denmark has to pay an entrance fee to the Guarantee Fund, no later than March 1, 2019.

  • Who has to pay ongoing contributions in 2019?

    Only insurance companies with active policies in Denmark, who are newly written or renewed after January 1, 2019, of the following types has to pay contributions for 2019: 

    1) Motorforsikringer (motor liability insurance)
    2) Familieforsikringer (household contents insurance)
    3) Husejerforsikringer (property insurance)
    4) Sundhedsforsikringer (health insurance)
    5) Ejerskifteforsikringer (latent defect insurance - change-of-ownership)
    6) Sælgeransvarsforsikring (property sellers liability insurance) and
    7) Byggeskadeforsikringer (structural warranty insurance – new build).

  • Why do members have to pay ongoing contributions to the Fund?

    As a result of the latest insurance companies bankruptcies, the Danish Guarantee Fund for Non-life Insurers no longer meets the statutory requirement to have a capital of DKK 300 million. The Danish Financial Supervisory Authority has therefore, in accordance with section 3 of ‘The Guarantee Fund for Non-life Insurance Companies Act’, instructed the Guarantee Fund to collect contributions from members of the Fund, in order to re-establish the Fund’s capital. 

  • How do members pay the ongoing contribution for 2019?

    The contributions to the Fund are paid through the Fund's system.

    They have to be paid per quarter. For 1st, 2nd, 3rd and 4th Quarters 2019, contributions must be paid on 1 May, 2019, 1 August, 2019, 1 November, 2019 and 1 February, 2020 respectively.

    All members have to register in the Guarantee Fund's system. To register, please go to this site.

  • Is the ongoing contribution per policy or per policyholder?

    The contribution is DKK 40 per policy, regardless of whether more than one of the contributing types of insurance has been entered on the same policy or if several persons or entities are covered by the same insurance.

  • How much is the ongoing contributions to the Fund?

    The contribution is determined by the Danish Financial Supervisory Authority and is fixed at DKK 40 per police for the following private line insurance policies:

    1) Motorforsikringer (motor liability insurance)
    2) Familieforsikringer (household contents insurance)
    3) Husejerforsikringer (property insurance)
    4) Sundhedsforsikringer (health insurance)
    5) Ejerskifteforsikringer (latent defect insurance - change-of-ownership)
    6) Sælgeransvarsforsikring (property sellers liability insurance) and
    7) Byggeskadeforsikringer (structural warranty insurance – new build).

    The contribution applies to policies issued from 1 January, 2019, which means that contributions must be paid for new policy holders as well as for renewals after 1 January, 2019.