{"id":140446,"date":"2026-04-22T08:56:16","date_gmt":"2026-04-22T08:56:16","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=140446"},"modified":"2026-04-22T08:56:16","modified_gmt":"2026-04-22T08:56:16","slug":"denmark-insurance-reinsurance","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/denmark-insurance-reinsurance\/","title":{"rendered":"Denmark: Insurance &amp; Reinsurance"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-140446","comparative_guide","type-comparative_guide","status-publish","hentry","guides-insurance-reinsurance","jurisdictions-denmark"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Kennedys<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/03\/Kennedys-Logo_Positive-Black_white-background.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Kennedys<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/03\/Kennedys-Logo_Positive-Black_white-background.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Insurance &amp; Reinsurance laws and regulations applicable in Denmark<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the writing of insurance contracts regulated in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Writing of insurance contracts is primarily regulated by The Danish Insurance Contracts Act which sets out rights and obligations of the insurer and the policyholder. The Danish Insurance Contracts Act applies unless the parties have agreed otherwise. Some provisions are, however, mandatory and cannot validly be derogated from.<\/p>\n<p>Apart from the mandatory provisions in the Danish Insurance Contracts Act, insurance contracts are subject to the general principles of Danish contract law. Accordingly, the parties enjoy the freedom of contract to a great extent.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are types of insurers regulated differently (i.e. life companies, reinsurers?)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned above (question 1), The Danish Insurance Contracts Act regulates insurance contracts between the insureds and insurers including life insurers. The Insurance Contracts Act does not, however, apply to reinsurers. As mentioned below (question 12), insurance and reinsurance companies are regulated by the Danish Insurance Business Act containing rules in relation to establishment and insurers capital and solvency. These requirements depend on whether the company can be considered as a \u2018Group 1\u2019 or a \u2018Group 2\u2019 company. The assessment of whether it is a group 1 or group 2 company depend on the insurance company\u2019s annual gross premium, total gross insurance provisions, and the extent of the company\u2019s engages in reinsurance activities. Group 1 companies are larger insurance companies, and group 2 includes all other insurance companies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are insurance brokers and other types of market intermediary subject to regulation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Insurance brokers, agents and other types of intermediaries are regulated by the Danish Insurance Mediation Act, which is based on the Insurance Distribution Directive (IDD). In brief, The Danish Insurance Mediation Act sets out a range of obligations and requirements on how insurance products are designed and sold both by insurance intermediaries and directly by insurance undertakings, i.e. strict license and registration requirements (see question 4 below), good business conduct and qualifications requirements and educational requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is authorisation or a licence required and if so how long does it take on average to obtain such  permission? What are the key criteria for authorisation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Both insurance and reinsurance companies who carry out insurance activities in Denmark must obtain a licence from the Danish Financial Supervisory Authority (FSA). The requirements for obtaining a licence as an insurance company are outlined in the Danish Insurance Business Act. According to the Danish Insurance Mediation Act, all insurance intermediaries must also be authorised by the Danish FSA to carry out insurance activities in Denmark. The Insurance Mediation Act sets out the requirements for the intermediaries to obtain a license from the Danish FSA. However, if an insurance company or intermediary established in the EU or the European Economic Area (EEA) already have been authorized in its home country, the company may carry out insurance activities in Denmark without obtaining an authorisation from the Danish FSA.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions or controls over who owns or controls insurers (including restrictions on  foreign ownership)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no legislative restrictions on foreign ownership of Danish insurance companies. According to the Danish Insurance Business Act, approval by the Danish FSA is, however, required before acquiring 10% or more of the shares in an undertaking or increasing the shareholding or voting power in an undertaking above 20%, 33% or 50% of Danish insurance companies and when turning the undertaking into a subsidiary or into another company. Approval may be given if a number of criteria are fulfilled, mainly whether the entity in question is regarded as \u201dfit and proper\u201d to own such holdings.<\/p>\n<p>Furthermore, senior managers have to meet fit and proper requirements and be approved by the Danish FSA (see question 15)<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to insure or reinsure risks in your jurisdiction without a licence or authorisation?  (i.e. on a non-admitted basis)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The absolute starting point in Denmark is that a foreign insurer or reinsurer must obtain a license from the Danish FSA in order to carry out insurance activities in Denmark, unless the company has obtained a license in another country within the European Union (EU), the European Economic Area (EEA) or in a country with which the EU has entered into an agreement with on the financial sector, provided that the Danish FSA has received notification of this from the supervisory authorities in the home country. The EU has entered into such bilateral agreement with the US. This agreement allows US reinsurers to reinsure risks in Denmark without obtaining a licence from either the Danish FSA \u2013 or any other EU or EEA authorities.\u00a0However in such event, the specific US reinsurer is required to notify the relevant supervisory authorities in the US, which then inform the Danish FSA, after which reinsurance activities can be commenced in Denmark.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is a branch of an overseas insurer, insurance broker and\/or other types of market intermediary in  your jurisdiction subject to a similar regulatory framework as a locally incorporated entity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general, overseas insurers, brokers and intermediaries are subject to the same regulatory framework as Danish insurance companies. However, a foreign entity may carry out insurance business in Denmark without obtaining a licence from the Danish FSA if the entity has already been granted a licence to carry out insurance business in another Member State in the EU or in the EEA. This may be done on either an establishment or a freedom-of-service basis. The foreign entity must, however, observe the Danish rules on good insurance practice, consumer protection and the insurance contract rules.<\/p>\n<p>Regarding insurers outside the EU and EEA, such undertakings have to establish a branch in Denmark and obtain an licence from the Danish FSA to carry out insurance and reinsurance activities in Denmark. As mentioned above (question 6), the EU and US have entered a bilateral agreement allowing US reinsurers to reinsure risk in Denmark without a license from the Danish FSA or from other authorities in EU\/EEA. However, the US reinsurers\u2019 home authority must inform the Danish FSA before commencing activities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions\/substance limitations on branches established by overseas insurers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In principle, branches established by overseas are subject to the same regulatory framework as Danish insurance companies and may carry insurance activities on equal terms as Danish companies. If the license is issued in another Member State in the EU or in the EEA, the branch can only carry out insurance activities governed by the Danish Insurance Business Act if these activities are covered by the company\u2019s license in the home country. Further, the insurance company have to appoint a general agent to manage the branch.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What penalty is available for those who operate in your jurisdiction without appropriate  permission?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It is a criminal offence to undertake insurance activities in Denmark without permission. Accordingly, the Danish FSA may issue warnings or impose injunctions and fines if an insurance company or reinsurance company fails to comply with regulatory requirements. In severe cases, the Danish FSA may also revoke the company\u2019s license.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How rigorous is the supervisory and enforcement environment? What are the key areas of  its focus?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Danish FSA supervises and monitors the insurers and reinsurers compliance with the Danish regulatory framework. The Danish FSA\u2019s strategy towards 2030 is based on a robust and proper financial sector with a particular focus on financial crime and targeted anti-money laundering supervision. Supervisory activities are risk-based, meaning that, based on an assessment of the probability and consequences of the various risks, the Danish FSA allocates resources according to where the risks are assessed to be significant and uses the instruments of financial regulation to limit these risks.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the solvency of insurers (and reinsurers where relevant) supervised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned above (question 10), The Danish FSA supervises and monitors the solvency of insurers and reinsurers through risk assessments. According to the Danish Insurance Business Act, which implements the EU Solvency II Directive, Danish insurance companies and reinsurance companies are obliged to perform their own supervision and reporting of their solvency. The Act requires companies to hold a minimum capital requirement (see questions 12) as well as a solvency capital requirement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the minimum capital requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Danish Insurance Business Act outlines certain requirements to the insurance company\u2019s capital and solvency. These requirements are based on the EU Solvency II Directive. In general, the minimum capital requirement for group 1 insurance companies is calculated based on the company\u2019s risk profile and amounts to 25-45 % of the company\u00b4s solvency capital. Group 2 insurance companies are exempt from the stricter capital requirements that apply to group 1 insurance companies. This exemption is due to their limited size and scope of activities, which means they are not subject to the Solvency II directive. Further, The Danish Financial Services Act states a lower monetary limit regarding the minimum capital requirements where the amount varies according to the type of insurance business carried out by the insurance company.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a policyholder protection scheme in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In case of an insurance company\u2019s bankruptcy, The Danish Guarantee Fund for Non-life Insurance Companies provides cover for policyholders in case of a non-life insurance company\u2019s bankruptcy. Generally, the guarantee scheme applies to consumer insurances taken out with insurers that have been granted license from the Danish FSA to carry out insurance business in Denmark or with foreign insurers based in an EU or EEA country distributing insurance on an establishment or freedom-of-service basis in Denmark.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are groups supervised if at all?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to the Danish Insurance Business Act, which implements the EU Solvency II Directive, groups are subject to supplementary Group supervision if at least one of the insurance companies within the group are classified as a \u2018Group 1 insurance company\u2019 by the Acts definition (see question 2). Group supervision is triggered if one insurance entity is headquartered in Denmark or elsewhere in the EU. In brief, the insurance companies within the group are required to calculate a group solvency capital requirement and the group\u2019s own funds must be transferable and fungible across the group. All related companies and all risks within the group must be included in the group solvency calculation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do senior managers have to meet fit and proper requirements and\/or be approved?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Both members of the board of directors and board of management of an insurance company have to meet fit and proper requirements and be approved by the Danish FSA. Essentially, the fit and proper requirements stipulates that a board member shall have sufficient knowledge, professional competences and experience and have a sufficiently good reputation and be able to demonstrate propriety, integrity and independence.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent might senior managers be held personally liable for regulatory breaches in  your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A senior manager may be held personally liable for actions and omissions in relation to regulatory breaches. In order to claim compensation for damages, the general law of damages in Denmark states that the claimant has to prove that the senior manager has acted negligently, that the claimant has suffered a loss, and that there is a causal connection between the negligence and the loss.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there minimum presence requirements in order to undertake insurance activities in  your jurisdiction (and obtain and maintain relevant licenses and authorisations)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned above (question 7), a foreign entity may carry out insurance activities in Denmark if the entity has already been granted a license to carry out insurance activities in another Member State in the EU or in the EEA. In that case, there are no minimum presence requirements. However, the undertaking must appoint a claims representative resident or established in Denmark, if the undertaking is taking out motor insurance activities in Denmark. When establishing a branch in Denmark, the insurance company must appoint a general agent to manage the branch.<\/p>\n<p>Insurers outside the EU and EEA have to establish a branch in Denmark and obtain an license from the Danish FSA to carry out insurance and reinsurance activities in Denmark.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions on outsourcing services, third party risk management and\/or  operational resilience requirements relating to the business?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Insurance companies have to comply with a number of requirements when an insurance activity is outsourced to a supplier, and the insurance companies are fully responsible for outsourced activities. According to the Danish Insurance Business Act, the insurance companies have to ensure that outsourcing of critical or important operational functions or activities is not undertaken in a way that could lead to deterioration of the management system, increase of the operational risk, impair the ability of supervisory authorities to monitor the insurance company\u2019s compliance of its obligations, and the outsourcing must not prevent the insurance company form offering policyholders a satisfactory service at all times.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions on the types of assets which insurers or reinsurers can invest in or  capital requirements which may influence the type of investments held?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generally, insurance companies must invest their assets in the best interests of the insured and beneficiaries according to the prudent person principle (the EU Solvency II Directive) to ensure that the investment strategy of the company reflects what customers have been assured. In brief, the principle provides that insurance companies shall only invest in assets and instruments whose risks they can properly identify, measure, monitor, manage, control and report, and appropriately take into account in the assessment of their overall solvency needs.<\/p>\n<p>Specifically, insurance and reinsurance companies carrying out life insurance activities must disclose a so-called \u2018active ownership policy\u2019 describing how the company integrates active ownership into its investment strategy when investing in a regulated market.<\/p>\n<p>In addition, insurance and reinsurance companies are subject to ESG regulation (see questions 33 and 35) which may influence the type of investments held.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there requirements or regulatory expectations regarding the management of an insurer's reinsurance risk, including any restrictions on the level \/ type of reinsurance utilised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general, the management of an insurer must ensure accurate valuation of assets and liabilities. In this context, consideration must be given to reinsurance contracts and risks. According to the EU Solvency II Directive, insurance companies are required to make a plan of operations containing principles of reinsurance activities in order to obtain license from the FSA. Furthermore, insurance companies carrying out life insurance activities must also define thresholds for reinsurance activities and make a statement detailing the expected income and expenditure relating to reinsurance acceptances and reinsurance cessions.<\/p>\n<p>Furthermore, insurance companies concluding finite reinsurance contracts or carrying out finite reinsurance activities must be able to identify, measure, monitor, control, manage and report the risks arising from such contracts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are sales of insurance supervised or controlled?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Danish FSA supervises and monitors sales of insurances as well. As marketing and sales activities are subject to various general legal requirements under the Danish Marketing Act (see question 23 below), supervision and control is also performed by the Danish Consumer Ombudsman.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is it possible to actively market the sale of insurance into your jurisdiction  on a cross border basis and are there specific or additional rules pertaining to distance selling or  online sales of insurance?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned in question 7, insurance, reinsurance and insurance intermediaries are allowed to operate in Denmark in accordance with the principles of freedom of establishment and freedom to provide services, provided that the undertaking is registered in their home Member State within EU or EEA. The undertaking must, however, observe the Danish rules on good insurance practice, consumer protection, and the insurance contract rules.<\/p>\n<p>Insurance companies operating outside of the EU and EEA must obtain a licence from the Danish FSA in order to carry out insurance activities in Denmark. As mentioned above, it is possible for US reinsurance companies to operate in Denmark without obtaining a license from the Danish FSA or any other EU\/EEA country.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are insurers in your jurisdiction subject to additional requirements or duties in respect of  consumers? Are consumer policies subject to restrictions, including any pricing restrictions? If  so briefly describe the range of protections offered to consumer policyholders<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned above, insurance companies must observe consumer protection regulation set out in the Insurance Contracts Act. Thus, the Act provides detailed mandatory rules in benefit of the insured consumer, including regulation regarding insurance premium, limitation periods, duty of disclosure and right of cancellation.<\/p>\n<p>In addition, Danish contract law prohibits the use of unfair contract terms in consumer agreements. A term will be considered unfair if it implies a significant imbalance in the parties\u2019 rights and obligations under the contract to the detriment of the consumer.<\/p>\n<p>On 5 February 2026, the Danish Supreme Court handed down a ruling stating, that it was not unfair for an insurer to increase consumer premiums without notice. In the relevant policies was stated, that the insurer was entitled to make <em>\u201cinsignificant\u201d<\/em> increases in premiums without notice. The insurer had for 4 yrs made yearly increases between 3,1% and 3,8% above the index, without noticing the insurers. The Danish Maritime and Commercial Court had found these increases to be unfair to the consumers, and thus void.<\/p>\n<p>This decision was however overturned by the Supreme Court who found against the Danish Consumer Ombudsman and in favor of the insurer and agreed, that the mentioned increases were not \u201csignificant\u201d.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal or regulatory resolution regime applicable to insurers in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Winding-up an insurance company is effected through liquidation, bankruptcy, or merger. Where winding-up is conducted in another manner, this must be approved by the Danish FSA. In case, the Danish FSA withdraws the license of an insurance company, the Danish FSA is entitled to make decisions regarding whether the insurance company must transfer its portfolio of insurance contracts to one or more insurance companies carrying out insurance activities in Denmark, or whether the insurance company must terminate its portfolio of insurance contracts in another way.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are the courts adept at handling complex commercial claims?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Each year, the Danish courts handle a large number of complex and commercial claims. Consequently, the courts, especially the High Courts and the Supreme Court, are therefore adept at handling complex commercial claims.<\/p>\n<p>The Maritime and Commercial Court and the district courts placed in parts of Denmark with most commercial activities are often skilled within commercial litigation. However, the adeptness may vary depending on the experience of the individual judges in the district courts. In district court cases, one judge normally participates. In complicated commercial matters, a party may, however, request for the participation of three judges at the main hearing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is alternative dispute resolution well established in your jurisdictions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general, an insurance company will inform the insured on which grounds coverage has been rejected. Also, the insured is entitled to ask for the reasons in writing and file a complaint to the insurance company. If the insured disagree with a decision made by the insurance company, the insured can file a complaint to the Insurance Complaints Board. Although both the insurance company and the consumer are bound by the Insurance Complaints Board\u2019s decision, the decision can be challenged before the court, where mediation will be available although not on a mandatory basis. Mediation is, however, still relatively rarely used for insurance disputes. Any dispute relating to business insurance can be brought before the court or, if agreed upon, arbitration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a statutory transfer mechanism available for sales or transfers of books of  (re)insurance? If so briefly describe the process<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to the Danish Insurance Business Act, Danish insurers may not, without authorisation from the Danish FSA, transfer all or part of its books of insurance to another insurance undertaking, including foreign insurers. The requirement for authorisation only applies to \u2018stocks\u2019 of sales or transfers and, accordingly, not sales or transfers of individual policies. Moreover, authorisation is not required where an insurance undertaking has obtained acceptance for the transfer from individual policyholders to which the transfer relates.<\/p>\n<p>In order to obtain such an authorisation, an application must be made to the Danish FSA, who is then obliged to publish a statement including an explanation of the proposed transfer and an invitation to policyholders whose insurance is intended to be transferred to make written notification to the Danish FSA if they have objections to the transfer. At the same time as it is published, the insurance company must inform the affected policyholders of the transfer and the Danish FSA\u2019s statement.<\/p>\n<p>Hereafter, the Danish FSA shall decide, taking into account the objections raised, whether the books of insurance can be transferred in accordance with the proposal submitted.<\/p>\n<p>As for foreign insurers who have taken out insurance in Denmark, approval from the Danish FSA is required before sales or transfers of such portfolios. The process is, however, less comprehensive for foreign insurers, as the financial association of the foreign insurers\u2019 nation retains the authority and decision-making competence. The Danish FSA\u2019s approval only concerns portfolios taken out in Denmark and is given if the Danish FSA finds that the transfer is sound to Danish policyholders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the primary challenges to new market entrants? Are regulators supportive (or  not) of new market entrants?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The primary challenges to new market entrants are setting up (re)insurance mediation services and obtaining license from the Danish FSA to carry insurance activities in Denmark, and other regulatory requirements, i.e. fit and proper requirements, rules regarding good conduct, disclosure obligations and other ongoing reporting obligations. Considering that the Danish insurance market is highly regulated, new market entrants should seek legal advice on the matter.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is the market being challenged by digital innovation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The use of technology, especially AI, is poised to continue transforming the Danish insurance market and the businesses that it serves. Danish insurance companies are continuing to invest in \u2018insurtech\u2019 in order to develop technologies that aim not only to improve customer experience, but also to provide a more accurate prediction of risk and fair pricing, thereby creating significant time and cost savings.<\/p>\n<p>Notwithstanding these positive developments, digital innovation also comes with threats and risks. Threats not only exist in the context of direct data and technology related risks, but also indirectly in new claims. Thus, risks in the form of both human and technology failures of AI, malicious use of AI by thirds parties and issues with data may lead to claims related to property damage, personal injury, reputational damage, medical malpractice and cyber.<\/p>\n<p>A particular challenge of evolving technology and AI capabilities is the potential for AI failures not fitting into existing insurance lines, such as a cyber insurance covering data leakage but not bodily harm, brand damage or physical property damage all occurring from the same failure or malicious use of AI.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the digitization of insurance sales and\/or claims handling treated in your  jurisdiction, for example is the regulator in support (are there concessions to rules being made) or  are there additional requirements that need to be met?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general, Danish regulators and the Danish FSA are in support of the digitization of insurance sales and\/or claims handling, but has up until know refrained from regulating such digitization. However, the Artificial Intelligence Act came into force on 1 August 2024 and will be implemented gradually towards 2027. This is poised to affect insurers use of technology and AI, as this Act sets out a risk-based approach to AI systems and divide AI systems into risk groups, where the requirements increase in line with the risk. Depending on risk classification, a ban on the AI system or requirements for market surveillance, documentation, impact assessments, information, etc. may apply and systems with unacceptable risks will be prohibited from putting into service or used by insurers in the European Union.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is insurers' use of customer data subject to rules or regulation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the Danish insurance industry, personal customer data such as age, health, housing conditions, children, job situation, etc. are actively used to carry out risk assessments and set prices for individual contractual relationships. The General Data Protection Regulation (GDPR), the Data Protection Act and specific rules of good conduct in the industry set the framework in this respect.<\/p>\n<p>In addition, the Danish industry association &#8216;Forsikring &amp; Pension&#8217; has developed a set of data ethics principles for Danish insurance companies setting out three main principles on transparency, solidarity and data security.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are there additional restrictions or requirements on sharing customer data  overseas\/on a cross-border basis?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The General Data Protection Regulation (GDPR) imposes restrictions on the transfer of personal data outside the European Union, to third-party countries or international organisations, to ensure that the level of protection of individuals afforded by the GDPR is not undermined. For example, the specific rules of GDPR must be observed if an insurance company wishes to use a company outside the EU or the European Economic Area (EEA) to operate IT systems or handle customer service.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are insurers subject to ESG regulation or oversight? Are there regulations\/requirements, including in connection with managing climate change and climate  change related financial risks specific to insurers? If so, briefly describe the range of measures  imposed.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Danish insurers are subject to a range of ESG related regulations and requirements, which are being fundamentally changed in the EU these years, including the Corporate Sustainability Reporting Directive (CSRD), which is the central focus of sustainability reporting in Denmark.<\/p>\n<p>However, on 16 December 2025, the Omnibus I simplification package on CSRD and CSDDD was adopted. It was proposed by the European Commission in February 2025 as part of the overall EU ambition to simplify regulations and increase European competitiveness.<\/p>\n<p>The package contains amendments to the Sustainability Reporting Directive (CSRD) and the Due Diligence Directive (CSDDD) as well as related legislation such as the Auditors Directive and the Accounting Directive. In addition, the agreement calls for further revision of ESG or sustainability requirements for the financial sector, including sector-specific financial legislation, the European Supervisory Authorities (ESAs) and supervisory expectations.<\/p>\n<p>As part of the simplification package, the so-called stop-the-clock directive has been adopted. Its purpose is to ease the implementation and reporting burden for companies and authorities, and in particular to avoid increases in reporting burdens in the period until the substantive changes in the negotiated Omnibus simplification package I have been implemented nationally.<\/p>\n<p>Implementation of the stop-the-clock directive in Danish legislation has been implemented for financial companies by amending the executive orders on financial reports for i.e. insurance companies and cross-sector pension funds.<\/p>\n<p>However, non-compliance or misrepresentation of ESG credentials will still expose insurers to a variety of risks, including financial loss, reputational damage and civil liability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal or regulatory framework in respect of diversity and inclusion to which  (re)insurers in your jurisdiction are subject?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are several laws in Denmark which regulate equal treatment and equal rights of women and men, and discrimination, which companies in Denmark are subject to. According to the Danish Insurance Business Act, larger companies are also subject to rules regarding target figures and policies for the under-represented gender. Additionally, the insurance company\u2019s board must establish a diversity policy to ensure sound operation, promoting diverse qualifications and competencies among its members.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Over the next five years what type of business do you see taking a market lead?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As described above (question 29), the use of technology will continue to transform the Danish insurance market. Insurers who are able to provide accurate risk analysis and fair pricing through digitalisation will most likely take a market lead. Thus, proper implementation of technology and artificial intelligence (AI) will assist insurers in setting accurate premiums reflecting the impact of an increasingly high-risk environment and economic and political uncertainty. It should also serve to enhance the insurance company\u2019s reputation in the market, and provide customers with a fair, transparent and responsive product experience.<\/p>\n<p>Further, ESG-related factors are poised to impact every aspect of an insurer\u2019s business; from their own investments and levels of claims, to the treatment of their customers and employees and selection of (legal) suppliers. Effective, technology-driven stress testing of products and procedures against ESG standards will be essential. Accordingly, insurers who address ESG requirements, such as climate change and biodiversity, will increasingly impact their competitive position and reputation in the Danish insurance market. As such, embracing sustainability goals as part of the insurance company\u2019s own corporate governance is vital in taking the market lead.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4809<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/140446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=140446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}