The Danish Guarantee Fund (“DGF”) published a new notice on its website on October 2, 2023. The new guidance informs non-life insurance companies, including foreign insurance companies with branches in Denmark and those writing business in Denmark on a Freedom of Services (FoS) basis, that the Danish Financial Supervisory Authority has announced that it will suspend the collection of guarantee fund contributions on motor insurance policies in 2024.
The suspension relates to policies that are newly taken out or renewed after December 31, 2023. It also adds that the collection of contributions will stop on December 23, 2023.
Furthermore, it is stated that this payment obligation will be resumed in 2025, possibly as a contribution divided between liability and comprehensive insurance. DGF assures non-life companies, that they will be informed in due course when the contribution on motor insurance policies will be due again.
Currently, a DKK 40.00 Danish Guarantee Fund contribution is payable on a quarterly basis on motor insurance policies.
