On Dec. 17, DEN GVT issued on insurer valuation of assets, liabilities.
DEN GVT issued an Executive Order on the valuation of assets and liabilities, including insurance provisions, for all Group 1 insurance companies, etc, on behalf of DEN FSA.
Follows DEN GVT issued Act 718 of Jun. 13, 2023 in the official journal, see #172805.
Order Overview
This Executive Order applies to Group 1 insurance companies and groups or to relevant groups that are covered by section 166(1) and (2), Insurance Business Act (Act 718).
Also requirements set out in EU SLV2 regulation, on valuation of assets and liabilities.
The Executive Order sets out requirements for Valuation of assets and liabilities, also Valuation of technical provisions, Segmentation, as well as Amounts recoverable under reinsurance agreements and ISPVs, and on Data quality and use of approximations.
A Group 1 insurance company must have guidelines and procedures to ensure that the best estimate and that the assumptions that are underlying the calculation of the best estimate are regularly compared with all the past experience that had been observed.
Violation of § 2-9, § 10, and § 11 and 12 is punishable by fine, and relevant companies (legal persons) may thus be held criminally liable under Chapter 5 of Criminal Code.
Effectiveness
The Executive Order will now enter into force with effect from Jan. 1, 2025, and the Executive Order number 1279 of Nov. 29, 2017 on valuation of assets and liabilities, including insurance provisions, for Group 1 insurance companies, etc. is repealed.
Regulators
DEN FSA; DEN GVT
Entity Types
IHC; Ins
Reference
OG BEK 1556, 12/17/2024; Rpl BEK 1279, 11/29/2017; SLV2 Reg 2015/35, Dir 2009/138
Functions
Accounting; Actuarial and Valuation; Financial; Reinsurance; Reporting; Risk; Treasury
