On June 1, 2023, the Danish Parliament passed the 'Insurance Business Act', which ensures legislation that is targeted, relevant and clear for both policyholders and companies
On June 1, 2023, the Danish Parliament passed the 'Insurance Business Act', which ensures legislation that is targeted, relevant and clear for both policyholders and companies
Overall, the law continues the current regulation of insurance business from the 'Financial Business Act' but gives both policyholders and companies a better overview of the regulation that applies in the area, thus ensuring that the high level of protection of policyholders and the insured remains intact.
The law has been long awaited, as the insurance and pension area has previously been regulated under the Financial Business Act. Until today, the area has been regulated on the basis of general legislation from the entire financial sector, which is why both policyholders and companies have requested more targeted and clearer legislation in the area. Thus, the new law also helps to remove a number of national rules and over-implementation of the area.
The bill was originally put forward by the 2018 Financial Regulation Review Working Group following the recommendation that the Financial Business Act be divided into new targeted sectors. This is due to the fact that the financial sector is increasingly characterized by EU regulation, which must be considered extensive and complex.