Act on Insurance Mediation

Act on Insurance Mediation 1)

This Act promulgates the Act on Insurance Mediation, cf. Consolidated Act No. 806 of 21 June 2024, with the amendments resulting from Section 9 of Act No. 481 of 22 May 2024 and Section 8 of Act No. 712 of 20 June 2025.

Chapter 1
Scope and Definitions

Section 1. This Act applies to insurance intermediaries, reinsurance intermediaries, and accessory insurance intermediaries, cf. however subsections 2 and 3.

Subsection 2. The Act does not apply to accessory insurance intermediaries who carry out insurance distribution when the following conditions are met:

1. The insurance constitutes a supplement to a good or a service and covers
   a) the risk of operational failure of the good, loss of the good, or damage to the good, or failure to use the service provided by the relevant supplier, or b) loss of or damage to luggage and other risks associated with a journey.
2. The premium amount of the insurance agreement amounts to a maximum of 4,476 DKK calculated pro rata on an annual basis, or when the insurance constitutes a supplement to a service that meets the conditions in item 1, the duration of this service is at most 3 months, and the insurance's annual premium amounts to a maximum of 1,492 DKK per person.

Subsection 3. The Act does not apply to the following activities:

1. Occasional provision of information in connection with other business activities, provided that
   a) the business does not take further measures to assist in concluding or fulfilling an insurance agreement, or b) the purpose of the business activity is not to assist in concluding or fulfilling a reinsurance agreement.
2. Commercial administration of claims, settlement, and valuation of an insurance or reinsurance company.
3. Provision of data and information about potential policyholders to insurance or reinsurance intermediaries or insurance or reinsurance companies, provided that only data is provided and the supplier does not take further measures to assist in the conclusion of an insurance or reinsurance agreement.
4. Provision of information about insurance or reinsurance products, about an insurance or reinsurance intermediary, or about an insurance or reinsurance company to potential policyholders, provided that only such information is provided and the supplier does not take further measures to assist in the conclusion of an insurance or reinsurance agreement.

Subsection 4. Section 3, subsection 7, Section 4, subsection 5, and Section 13, subsection 3, apply to the following:

1. Danish insurance companies.
2. Branches in Denmark of an insurance company authorized in another country within the European Union or in a country with which the Community has concluded an agreement in the financial sector.
3. Branches in Denmark of insurance companies authorized in a country outside the European Union, with which the Union has not concluded an agreement in the financial sector.

Subsection 5. Section 3, subsection 7, applies to reinsurance companies.

Subsection 6. The Act does not apply to insurance and reinsurance distribution in connection with risks and liabilities in a country outside the European Union, unless the Union has concluded an agreement with the relevant country in the financial sector.

Section 2. In this Act, the following terms are defined:

1. Insurance distribution:
   a) The business consisting of advising on, proposing, or carrying out preliminary work in connection with the conclusion of insurance agreements, concluding such agreements, or participating in the administration and fulfillment of such agreements. b) The business consisting of providing information about one or more insurance agreements in accordance with the customer's chosen criteria via a website or other media and producing a prioritized list of insurance products, including price and product comparisons or discounts on the price of an insurance agreement, if the customer is able to directly or indirectly conclude an insurance agreement via the relevant media.
2. Reinsurance distribution: Business consisting of advising on, proposing, or carrying out preliminary work in connection with the conclusion of reinsurance agreements, concluding such agreements, or participating in the administration and fulfillment of such agreements, regardless of whether such business is carried out by reinsurance companies without the involvement of a reinsurance intermediary.
3. Insurance intermediary:
   a) A natural or legal person who is not an insurance or reinsurance company or its employees, and who is not an accessory insurance intermediary, who for remuneration initiates or carries out insurance distribution business. b) A credit institution or investment firm as defined in Article 4, subsection 1, items 1 and 2, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, who for remuneration initiates or carries out insurance distribution business.
4. Reinsurance intermediary: A natural or legal person who is not a reinsurance company or its employees, who for remuneration initiates or carries out reinsurance distribution business.
5. Accessory insurance intermediary: A natural or legal person who for remuneration initiates or carries out insurance distribution business as an accessory activity, provided that the following conditions are met:
   a) The person is not a credit institution or investment firm as defined in Article 4, subsection 1, items 1 and 2, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms. b) The person does not carry out insurance distribution as a main profession. c) The person only distributes insurance products that constitute a supplement to a good or service that the person offers. d) The insurance product does not include life or liability insurance, unless this is a supplement to the good or service that the intermediary offers as their main profession.
6. Remuneration: All forms of fixed and variable salary, commissions, fees, other payments, and benefits granted or paid to a natural or legal person with a view to the exercise of insurance distribution.
7. Close links:
   a) Direct or indirect links within a group, b) capital interests, meaning a company's direct or indirect holding of 20 percent or more of the voting rights or capital in a company, or c) several companies' or persons' common link, cf. letter a, with a company.
8. Large risks:
   a) Risks under insurance classes 4-7, 11, and 12 in Annex 1 to the Act on Insurance Business. b) Risks under insurance classes 14 and 15 in Annex 1 to the Act on Insurance Business, when the policyholder carries out industrial, commercial, or liberal business and the risks concern this business. c) Risks under insurance classes 3, 8-10, 13, and 16 in Annex 1 to the Act on Insurance Business, when the policyholder meets at least two of the following conditions:
   i) The policyholder has a balance sheet total of at least 49.3 million DKK. ii) The policyholder has an annual net turnover of at least 101.6 million DKK. iii) The policyholder had 250 or more full-time employees in the most recent financial year.
9. Durable medium: Any instrument that enables the customer to store information addressed personally to the customer in a way that allows for future reference for a period adequate for the purposes of the information, and that allows for unaltered reproduction of the stored information.
10. Home state:
    a) If the intermediary is a natural person: The country within the European Union or the country with which the Union has concluded an agreement in the financial sector where the intermediary has their residence. b) If the intermediary is a legal person: The country within the European Union or the country with which the Union has concluded an agreement in the financial sector where the legal person has its registered office, or, if according to the law of this country it has no registered office, the country where the legal person's head office is located.
11. Host state: The country within the European Union or the country with which the Union has concluded an agreement in the financial sector where an insurance or reinsurance intermediary has a permanent presence or a fixed establishment or provides services, and which is not the intermediary's home state.
12. Insurance-based investment product: An insurance product that has a maturity value or a surrender value, where this maturity value or surrender value is directly or indirectly wholly or partially exposed to market fluctuations, and which does not include:
    a) Non-life insurance products listed in Annex I to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II). b) Life insurance contracts where the benefits specified in the contract are paid out only upon death or due to incapacity for work resulting from accident, illness, or disability. c) Pension products that are considered to have the main purpose of securing a pension income for investors and entitle the investor to certain benefits. d) Officially recognized occupational pension schemes falling within the scope of Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision or Directive 2009/138/EC of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II). e) Individual pension products requiring an economic contribution from the employer, where the employer or employee has no choice regarding the pension product or pension provider.
13. Insurance distributor: An insurance intermediary, an accessory insurance intermediary, or an insurance company.
14. Branch: An intermediary's agency or branch located in another Member State's territory than the home state's.
15. Head office: The place from which the main activities are administered.

Chapter 2
Authorization and Registration

Section 3. Companies must have authorization from the Danish Financial Supervisory Authority (Finanstilsynet) to carry out insurance distribution and reinsurance distribution as insurance intermediaries and reinsurance intermediaries.

Subsection 2. The Danish Financial Supervisory Authority grants authorization to companies under subsection 1 when the following conditions are met:

1. The company's home state is Denmark.
2. The company's board of directors and management, or for an insurance or reinsurance intermediary that is a sole proprietorship, the owner or those with management responsibility for the company if it is operated as a legal person without a board or management, meet the conditions in Section 9.
3. The company has liability insurance or another corresponding guarantee against claims for damages.
4. The company has taken measures to protect customers against the inability to pay of the insurance intermediary or reinsurance intermediary either
   a) by using a release certificate concluded between the insurance company and the intermediary, whereby money paid by the customer to the intermediary is considered paid to the company, while money paid by the company to the intermediary is not considered paid to the customer until the customer receives it, or b) by establishing a special account for the deposit of entrusted funds and the company has established security for these funds.
5. There are no close links between the applicant and other companies or persons that could hinder the performance of the Danish Financial Supervisory Authority's tasks.
6. The legislation in a country outside the European Union, with which the Union has not concluded cooperation in the financial sector, regarding a company or person with whom the applicant has close links, will not hinder the performance of the Danish Financial Supervisory Authority's tasks.

Subsection 3. An application for authorization must contain the information necessary for the Danish Financial Supervisory Authority to assess whether the conditions in subsection 2 are met, including a description of the activities the company intends to carry out, and information about the identity of natural and legal persons holding shares in the intermediary exceeding 10 percent, and the size of these shares. An application for authorization must also contain the information that must appear in the registers, cf. Section 6, including whether the insurance intermediary is independent, cf. Section 16.

Subsection 4. An application for authorization under subsection 1 must be submitted via the Danish Financial Supervisory Authority's self-service solution attached with the necessary information, cf. subsection 3. If an application exceptionally cannot be submitted via the self-service solution, the application attached with the necessary information must be submitted electronically to the Danish Financial Supervisory Authority using the Authority's notification form.

Subsection 5. The Danish Financial Supervisory Authority makes a decision on authorization no later than 3 months after the Danish Financial Supervisory Authority has received all information necessary to process the application. The Danish Financial Supervisory Authority immediately notifies the applicant of the decision.

Subsection 6. The Danish Financial Supervisory Authority sets detailed rules regarding the liability insurance mentioned in subsection 2, item 3, including the size of the insurance's coverage sum, and regarding the security for entrusted funds mentioned in subsection 2, item 4, letter b.

Subsection 7. An insurance company, a reinsurance company, an insurance intermediary, and a reinsurance intermediary may only use insurance and reinsurance distribution services from an insurance or reinsurance intermediary that has authorization, cf. subsection 1.

Section 4. A company must be registered before it may carry out accessory insurance mediation.

Subsection 2. A company may be registered when the company documents that it meets the conditions in Section 3, subsection 2, items 1 and 3-6, and subsection 3. The company must also submit information for the Danish Financial Supervisory Authority's assessment of whether it or the employees in the company responsible for the distribution of accessory insurance meet the conditions in Section 10, subsection 1.

Subsection 3. An application for registration under subsection 1 must be submitted via the Danish Financial Supervisory Authority's self-service solution attached with the necessary information, cf. subsection 2. If an application exceptionally cannot be submitted via the self-service solution, the application attached with the necessary information must be submitted electronically to the Danish Financial Supervisory Authority using the Authority's notification form.

Subsection 4. The Danish Financial Supervisory Authority makes a decision on registration no later than 3 months after the Danish Financial Supervisory Authority has received all information necessary to process the application. The Danish Financial Supervisory Authority immediately notifies the applicant of the decision.

Subsection 5. An insurance company or an insurance intermediary may only use insurance distribution services from an accessory insurance intermediary covered by this Act that is registered, cf. subsection 1.

Section 5. The Danish Financial Supervisory Authority establishes and maintains a public register of companies that have been authorized as insurance intermediaries or reinsurance intermediaries, cf. Section 3, or that meet the conditions for registration to carry out accessory insurance mediation, cf. Section 4, subsection 2.

Section 6. The registers, cf. Section 5, must contain the following information:

1. Names of persons in the management of the insurance intermediary, reinsurance intermediary, or accessory insurance intermediary who are responsible for the insurance mediation, reinsurance mediation, or accessory insurance mediation.
2. Information about in which countries other than Denmark within the European Union or countries with which the Union has concluded an agreement in the financial sector, insurance mediation, reinsurance mediation, or accessory insurance mediation is provided.

Subsection 2. The register of insurance intermediaries, cf. Section 5, must also contain information about whether the insurance intermediary is independent, cf. Section 16.

Section 7. An insurance intermediary, a reinsurance intermediary, or an accessory insurance intermediary that is registered, cf. Section 5, must notify the Danish Financial Supervisory Authority as soon as possible if changes occur in the information that the Danish Financial Supervisory Authority has received and relied upon when granting authorization or registration.

Subsection 2. Regardless of subsection 1, an intermediary is obliged to immediately notify the Danish Financial Supervisory Authority if changes occur in the information that the Danish Financial Supervisory Authority has received pursuant to Section 3, subsection 2, items 5 and 6, and subsection 3, first sentence.

Section 8. An insurance intermediary must report the company's turnover and the number of insurance policies mediated to the Danish Financial Supervisory Authority no later than July 1 each year.

Requirements of Suitability and Honesty

Section 9. A member of the board of directors or a member of the management of an insurance intermediary and a reinsurance intermediary, or the owner of an insurance intermediary or a reinsurance intermediary that is a sole proprietorship,

1. must have sufficient knowledge, professional competence, and experience to be able to perform the office or position,
2. must have a sufficiently good reputation and be able to demonstrate honesty, integrity, and sufficient independence in performing the office or position,
3. must not have been held criminally liable for violation of the Criminal Code, financial legislation, or other relevant legislation, if the violation entails a risk that the person cannot perform their office or position in a satisfactory manner,
4. must not have filed a petition for or be under restructuring proceedings, bankruptcy, or debt settlement, and
5. must not have exhibited such behavior that there is reason to assume that the person will not perform the office or position in a proper manner.

Subsection 2. When a person assumes an office as a board member or a position as a director in an insurance intermediary or a reinsurance intermediary, the Danish Financial Supervisory Authority ensures that the person meets the suitability and honesty requirements in subsection 1. The Danish Financial Supervisory Authority makes a decision on whether the person can hold the office or position in the relevant business. The first and second sentences apply correspondingly to the owner of an insurance intermediary or a reinsurance intermediary that is a sole proprietorship.

Subsection 3. If the Danish Financial Supervisory Authority assesses that the person does not meet the requirements in subsection 1, items 2-5, the duration of the decision must be stated in the decision.

Subsection 4. The Danish Financial Supervisory Authority may in special cases, where the Danish Financial Supervisory Authority assesses that a person does not have sufficient professional prerequisites or experience relative to the position as a member of the management that the person is assessed for, make a decision that the person may hold the position under specifically determined conditions.

Subsection 5. A member of the board of directors or a member of the management of an insurance intermediary or a reinsurance intermediary, or the owner of an insurance intermediary or a reinsurance intermediary that is a sole proprietorship, must notify the Danish Financial Supervisory Authority of matters mentioned in subsection 1 in connection with their entry into the insurance intermediary's or reinsurance intermediary's management or, for an insurance intermediary or a reinsurance intermediary that is a sole proprietorship, in connection with an application for authorization, cf. Section 3, subsection 2, item 2, and of matters mentioned in subsection 1, items 2-5, if these matters change.

Subsection 6. If an insurance intermediary or a reinsurance intermediary is operated as a legal person without a board of directors or management, subsections 1-5 apply to the person or persons with management responsibility for the insurance intermediary and reinsurance intermediary.

Section 10. An employee in an accessory insurance intermediary responsible for the distribution of accessory insurance

1. must not have been held criminally liable for violation of the Criminal Code, financial legislation, or other relevant legislation, if the violation entails a risk that the person cannot perform their position in a satisfactory manner,
2. must not have filed a petition for or be under bankruptcy, and
3. must have a good reputation, including not having exhibited behavior that gives reason to assume that the person will not perform the position in a proper manner.

Subsection 2. An employee in an accessory insurance intermediary responsible for the distribution of accessory insurance must, in connection with their employment as responsible for the distribution of accessory insurance at the insurance intermediary, notify the accessory insurance intermediary of matters mentioned in subsection 1 and subsequently notify if these matters change.

Chapter 3
Competence Requirements

Section 11. An insurance intermediary and a reinsurance intermediary must ensure that all the company's employees who carry out insurance or reinsurance distribution business have sufficient competencies.

Subsection 2. An accessory insurance intermediary must have appropriate knowledge of the products that the intermediary distributes.

Subsection 3. The Minister of Industry sets detailed rules regarding competence requirements and requirements for good reputation for employees directly engaged in insurance or reinsurance distribution at an insurance intermediary or reinsurance intermediary.

Chapter 4
Good Conduct, Remuneration, etc.

Good Conduct

Section 12. An insurance intermediary and an accessory insurance intermediary must conduct business in accordance with honest business practices and good practice for the business area.

Subsection 2. The Minister of Industry sets detailed rules regarding honest business practices and good practice for insurance intermediaries and accessory insurance intermediaries and regarding the issuance of information material.

Subsection 3. The Danish Financial Supervisory Authority may, after consultation with representatives of consumers and the relevant financial industry organizations, develop and publish guidelines for honest business practices and good practice in specifically specified areas that are considered significant, particularly from the perspective of consumers.

Section 12a. An insurance intermediary and an accessory insurance intermediary must not participate in insurance being taken out for persons residing in Denmark, Danish ships, or other risks existing in this country with insurers other than the following:

1. Danish insurance companies.
2. Foreign insurance companies that meet the conditions in Section 49, subsection 1, or Section 52, subsection 1, of the Act on Insurance Business.
3. Foreign insurance companies that have received authorization from the Danish Financial Supervisory Authority.

Processing of Personal Identification Numbers

Section 12b. Insurance intermediaries and accessory insurance intermediaries may process information about personal identification numbers with a view to necessary identification...