Tax Alert – Denmark – Changes to the Terrorism Insurance Pool
We can confirm an update to the Danish Terrorism Insurance Pool for Non-Life Insurance. The “Act on a terror insurance scheme in the non-life insurance area” will come into force on 1 July 2019.
The reinsurance pool now has a total limit of DKK 13.4 billion.
The scheme provides insurance coverage for property losses in the event of nuclear, biological, chemical and radioactive (NBCR) terrorism for the following lines of business:
– Buildings and contents
– Railway rolling stock
– Motor vehicles
Non-life insurance companies that cover the above-mentioned lines of business are required to be members of the pool. There is an annual tax of 5.00% per policy on the insurance premium to be levied by members of the scheme. Once the total limit of the pool is reached, the excess contributions are refunded back to participating insurers.
The Act can be accessed here.
If you have any questions regarding Danish Terrorism Insurance Pool for Non-Life Insurance, please get in touch with a member of the team at email@example.com