Order on Permission to Provide Services in Denmark for Certain Insurance Companies with Headquarters in the United Kingdom

Order on Permission to Provide Services in Denmark for Certain Insurance Companies with Headquarters in the United Kingdom¹)

Pursuant to Section 60 and Section 316, Paragraph 1, of Act No. 718 of 13 June 2023 on Insurance Business, it is hereby ordered:

Scope of Application

Section 1. This Order applies to insurance companies that meet the following conditions:

1. Have their headquarters in the United Kingdom.
2. Have permission to conduct business, including reinsurance, as described in Annex 1 and 2 to the Act on Insurance Business under the legislation of their home country.
3. Were notified to underwrite property insurance or life insurance in Denmark by 31 December 2020, pursuant to Sections 49-54 of the Act on Insurance Business.

Provision of Services in Denmark

Section 2. Insurance companies that meet the conditions in Section 1 maintain permission to provide services in Denmark, subject to Paragraph 2.

Paragraph 2. Permission under this Order to provide services in Denmark is limited to covering the servicing of agreements entered into before 31 December 2020.

Paragraph 3. Insurance companies with permission under this Order must not enter into new agreements or renew, extend, resume, or otherwise prolong existing agreements.

Section 3. The business of insurance companies in Denmark must be conducted in accordance with fair business practices and good practice within the business area, pursuant to the Order on Good Practice for Insurance Distributors.

Paragraph 2. For the business of insurance companies in Denmark, the rules in the Order on Information on Fees and Other Costs for Insurance Companies apply. For companies servicing life insurance agreements, the rules in the Order on Information on Life Insurance Agreements also apply.

Section 4. Insurance companies with permission under this Order are obliged to ensure that the Danish Financial Supervisory Authority (Finanstilsynet) is at all times in possession of current information regarding the following matters:

1. The company's name and the address of its headquarters.
2. The insurance classes, groups of classes, and any accessory risks that the insurance company covers in Denmark.
3. The insurance classes, groups of classes, and any accessory risks that the insurance company is permitted to cover in the United Kingdom or Gibraltar.
4. A description of the insurance company's business in Denmark, including information on the number of policies and the total premium sum.

Paragraph 2. If the insurance company covers risks under insurance class 10, pursuant to Annex 1 to the Act on Insurance Business, excluding carrier's liability, the insurance company must:

1. Be a member of the Danish Association for International Motor Vehicle Insurance. For the relevant insurances covering the aforementioned risks, the Road Traffic Act Sections 105-108 and 110-115 apply.
2. Appoint a representative who is resident or established in this country. The representative must have the authority to: a) Collect all necessary information in connection with claims and to represent the insurance company towards injured parties who may make claims, including regarding the payment of such claims. b) Represent the insurance company towards the authorities and in lawsuits against the insurance company in connection with the claims mentioned in this paragraph.

Paragraph 3. The appointment of the representative under Paragraph 2, No. 2, is not considered the establishment of a branch office, pursuant to Section 56 of the Act on Insurance Business.

Paragraph 4. The insurance company must annually notify the Danish Financial Supervisory Authority of the matters mentioned in Paragraph 1. The insurance company is additionally obliged to immediately notify the Danish Financial Supervisory Authority of any changes to the matters mentioned in Paragraphs 1 and 2.

Paragraph 5. Insurance companies with permission under this Order are obliged to provide the Danish Financial Supervisory Authority with the information that the Authority deems necessary for the assessment of the company's activities in Denmark.

Penal Provisions

Section 5. Violation of Section 2, Paragraphs 2 and 3, and Section 4 is punishable by a fine.

Paragraph 2. Companies and other legal entities may be subject to criminal liability pursuant to the rules in Chapter 5 of the Criminal Code.

Entry into Force

Section 6. This Order enters into force on 1 January 2025.

Paragraph 2. Order No. 2179 of 26 November 2021 on Permission to Provide Services in Denmark for Certain Insurance Companies with Headquarters in the United Kingdom is repealed.

Danish Financial Supervisory Authority, 5 December 2024 Louise Mogensen / Line Bergmann

5 December 2024. 2 No. 1425.

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1. References in this Order to the United Kingdom or its territory are understood as references to: The United Kingdom, Gibraltar, the Channel Islands, the Isle of Man, or the overseas countries and territories listed in Annex II to the Treaty on the Functioning of the European Union.

Official Gazette A 2024 Published on 10 December 2024 5 December 2024. No. 1425. Ministry of Industry, Business and Financial Affairs, Danish Financial Supervisory Authority, file no. 24-019224 CQ003062