Questions & answers about membership of the Danish 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 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.

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.

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 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.

The Danish Guarantee Fund has, on request, assessed that a “knallert 45” must be considered a “motorkøretøj” within the meaning of Færdselsloven (road traffic act). A “knallert 45” is therefore covered by the obligation to contribute.

No - The Guarantee Fund for Non-life Insurers Act entered into force for Greenland on July 1, 2008, by Royal Decree No. 685 of June 28, 2008. The Danish Financial Supervisory Authority may lay down more detailed regulation on the payment of contributions on policies covering risks in Greenland, see section 3(6) of the Royal Decree. This authorization has however not been used. Therefore, no contributions are to be charged on consumer insurance policies taken out in Greenland.