Regulatory Alerts2024-12-05
Order on the Calculation of the Economic Value of an Insurance Policyholder's Product Upon Switching
Issued by the Danish Financial Supervisory Authority, this Order establishes the mandatory calculation framework for determining the economic value of an insurance policyholder's product upon switching to a new product. It prescribes distinct individual and average calculation methods for participating and unit-linked insurance, requiring precise adjustments for retrospective provisions, profit margins, collective bonus potentials, switching safeguards, and security deductions. The regulation further mandates pre-switching notifications to the supervisory authority regarding provision decomposition and value distribution, imposes fines for violations, and repeals the previous 2017 order effective 1 January 2025.
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