Tema
Debat

Mandatory membership of the Danish Guarantee Fund for Non-Life Insurers

1 Jan 2019
As of 1 January 2019 all direct providers of non-life insurance in the EU/EEC which through branches or cross-border services provide (or wish to provide) non-life insurance in Denmark, are obliged to be a member of the Danish Guarantee Fund for Non-Life Insurers

As a result of the amendment to the Danish Guarantee Fund for Non-life Insurance Undertakings Act, all Non-life Insurers with their head office in the EU/EEA that can carry out insurance business activities either by establishment of a branch or by freedom to provide services in Denmark must be member of the Danish Guarantee Fund. The requirement is also compulsory to Non-life undertakings who only carries out commercial insurance business in Denmark.

Be aware that even if companies do not currently have any active policies in Denmark, they are still required to become member of the Danish Guarantee Fund. The notification to carry out insurance business is in itself sufficient to require membership.

According to section 5 of the Act, all new members of the Danish Guarantee Fund shall no later than March 1, 2019 pay an entrance fee to the Fund. The entrance fee is 50 DKK per insurance policy for certain private insurance lines, but with a minimum one-time entrance fee of 100.000 DKK.

Following this, insurance undertakings that are notified to carry out insurance business in Denmark, but have either not written any insurance policies in Denmark or written any of the specific types of insurance policies in Denmark are still obliged to pay an entrance fee to the Guarantee Fund of DKK 100.000.

The Danish Guarantee Fund has decided to establish an IT system to provide the best possible service to our members. This system is a database for all the members of the Guarantee Fund. In this system all insurance companies can register and pay the required entrance fee, as well as report insurance policies and pay ongoing contributions.