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Questions & answers about membership of the Danish Guarantee Fund

Questions & answers


  • Who has to be members of the Guarantee Fund?

    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 through a branch or cross-border service business.


    See the Guarantee Fund's list of members here

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

    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 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 1 January, 2019 membership of the Guarantee Fund is a pre-requisite to carry out insurance business in Denmark.

  • Which insurance companies has to pay entrance fee to the Guarantee Fund?
    • 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 based in a country within the EU/EEA that has been granted the Danish Financial Supervisory Authority's permission to carry out insurance business in Denmark via a branch or cross-border business.
  • How much is the entrance fee to enroll in the Guarantee Fund?

    For all non-life insurance companies who is included in the membership obligation as of 1 January 2019, the one-time contribution is fixed at DKK 50 per policy of a list of private line insurance policies that the insurance company has written in Denmark per 1 January 2019.

     

    The private line insurances included in the entrance fee calculation are:

    • Motorforsikringer (motor liability insurance)
    • Familieforsikringer (household contents insurance)
    • Husejerforsikringer (property insurance)
    • Sundhedsforsirkinger (health insurance)
    • Ejerskifteforsikringer (latent defect insurance - change-of ownership)
    • Sælgeransvarsforsikringer (property sellers liability insurance) and
    • Byggeskadeforsikringer (structual warranty insurance – new build)

     

    The one-time contribution cannot be less than DKK 100,000.

     

    Non-life insurance companies with membership obligations to the Guarantee Fund, which have received the Danish Financial Supervisory Authority permission to carry out insurance business in Denmark after 1 January 2019, must pay a one-time contribution of DKK 100,000.

  • How does insurance companies enroll in the Guarantee Fund and pay the entrance fee?

    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.

  • Who has to pay ongoing contributions in 2019?

    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.

  • 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:

     

    • Motorforsikringer (motor liability insurance)
    • Familieforsikringer (household contents insurance)
    • Husejerforsikringer (property insurance)
    • Sundhedsforsikringer (health insurance)
    • Ejerskifteforsikringer (latent defect insurance - change-of-ownership)
    • Sælgeransvarsforsikringer (property sellers liability insurance) and
    • Byggeskadeforsikringer (structural warranty insurance – new build)

     

    A fixed amount must be paid per policy, regardless of whether multiple insurance types are included in one policy, or if several persons or entities are covered by the same policy.

     

    The contribution applies to policies issued from 1 January 2019. This means that contributions must be paid for policies written or renewed after 1 January 2019.

  • How do members pay the ongoing contribution for 2019?

    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.

  • Is it possible for an insurance company based outside the EU/EEA to be member of the Guarantee Fund?

    No.

     

    According to the Guarantee Fund Act, only non-life insurance companies who are registered within the EU/EEA can be members of the Guarantee Fund.

  • Is it possible to terminate a membership of the Guarantee Fund?

    No.

     

    Only if an insurance company have its rights to carry out insurance business in Denmark cancelled, does the membership of the Guarantee Fund cease.

    The entrance fee is not refunded upon termination of membership.