Regulatory Alerts2024-12-05
Order on the Basic Interest Rate for Life Insurance Companies
The Danish Financial Supervisory Authority issued this order to regulate the basic interest rate used by life insurance companies for premium calculations, capping it at 1.0% per annum including guaranteed margins. The regulation mandates that insurance contracts cannot restrict insurers from adjusting future rates for more than one year and provides specific exceptions and dispensation mechanisms for transfers, technical issues, or minor economic impacts. It repeals the previous 2023 order and enters into force on January 1, 2025, with penalties applicable for violations of the core rate limits and adjustment restrictions.
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