On Dec. 7, DEN GVT issued cross-border co-insurance business order.
DEN GVT issued Executive Order BEK 1404 of Dec. 5, 2024 on cross-border co-insurance business in EU or countries where EU has entered into financial agreement.
Repeals subsection 2, Executive Order 1166, Oct. 31, 2017 on cross-border co-insurance activity within EU or countries with which EU has a financial agreement.
Applies to group 1 insurance firms that conduct co-insurance business with 1 or more risk listed in insurance classes 3-16 in appendix 1 of the Insurance Business Act.
Also applies to following conditions: major risk; covered by a single agreement with a total premium for same period by several co-insurers & 1 leading insurance company.
Is located in EU/countries with EU agreements; lead insurer could cover entire risk.
At least one co-insurer participates via head office or a member state branch; lead company fully assumes assigned role and determines insurance conditions and tariffs.
Certain Insurance Act sections/Road Traffic Act section 105 only apply to lead insurer.
Activity not meeting subsection 1 conditions are still subject to Insurance Business Act.
Effectiveness
The Executive Order enters into force on Jan. 1, 2025.
Dec. 17, 2024 Mutual Member Liability
On Dec. 17, 2024, DEN GVT issued Executive Order BEK 1552, of Dec. 5, 2024, on the exemption of members from liability for the company's obligations, where a mutual insurer participates in pool scheme by co-insurance in articles of association provisions.
The Order had been drawn up by DEN FSA to update all of the the relevant legislation.
Executive Order enters into force on Jan. 1, 2025, when Executive Order 113 of Mar. 12, 1993 on member liability on mutual insurance company co-insurance, is repealed.
