Regulatory Alerts2024-12-05
Order on the Contribution Principle
The Danish Financial Supervisory Authority issues this Order to regulate the calculation and distribution of realized results for life insurance companies and cross-border pension funds under the contribution principle. It mandates that realized results be allocated to specific risk, cost, and interest groups based on their contribution, ensuring homogeneous treatment and prohibiting significant economic redistribution beyond risk coverage. The regulation establishes strict reporting requirements, solvency monitoring, and penalties for non-compliance, replacing the previous 2017 Order effective January 1, 2025.
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