Front Matter Page
IMF Country Report No. 20/252
DENMARK
FINANCIAL SECTOR ASSESSMENT PROGRAM
TECHNICAL NOTE—INSURANCE REGULATION AND SUPERVISION
August 2020
This Technical Note on Insurance Regulation and Supervision for the Denmark FSAP was prepared by a staff team of the International Monetary Fund as background
documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed in July 2020.
Copies of this report are available to the public from
International Monetary Fund • Publication Services
PO Box 92780 • Washington, D.C. 20090
Telephone: (202) 623–7430 • Fax: (202) 623–7201
E-mail: publications@imf.org Web: http://www.imf.org
Price: $18.00 per printed copy
International Monetary Fund
Washington, D.C.
© 2020 International Monetary Fund
Front Matter Page
DENMARK
FINANCIAL SECTOR ASSESSMENT PROGRAM
TECHNICAL NOTE
INSURANCE REGULATION AND SUPERVISION
July 15, 2020
Prepared By
Monetary and Capital Markets Department
This Technical Note was prepared by IMF staff in the context of the Financial Sector Assessment Program in Denmark. It contains technical analysis and detailed information underpinning the FSAP’s findings and recommendations. Further information on the FSAP can be found at http://www.imf.org/external/np/fsap/fssa.aspx
Contents
Glossary
EXECUTIVE SUMMARY
INTRODUCTION
INSURANCE MARKET STRUCTURE
INSURANCE REGULATION
A. Solvency II Implementation
B. Conduct of Business and Consumer Protection
C. Crisis Management and Insurance Resolution
INSURANCE SUPERVISION
A. Supervisory Review
B. On-Site Inspections
C. Corporate Governance and Internal Controls
D. Countering Fraud in Insurance
E. Anti-Money Laundering and Combating the Financing of Terrorism
F. Consolidated Supervision and Supervision of Cross-Border Business
G. Macroprudential Surveillance
FIGURES
1. Size of the Insurance Sector
2. Insurance Liabilities
3. Insurance Asset Allocation
4. Profitability and Solvency
5. Long-Term Guarantee Measures
6. Composition of the Solvency Capital Requirement
7. Supervisory Resources Compared to European Peers
TABLES
1. Main Recommendations on Insurance Regulation and Supervision
2. Insurance Penetration and Density
3. Premium Income
BOXES
1. Market-Return Products
2. Recent Insurance Failures
3. Resources in Insurance Supervision
APPENDICES
I. Financial Soundness Indicators of the Insurance Sector
II. Supervisory Resources in the Insurance Sector
Glossary
| AM L/C FT |
Anti-Money Laundering and Combating the Financing of Terrorism |
| BSCR |
Basic Solvency Capital Requirement |
| CDD |
Customer Due Diligence |
| DFSA |
Danish Financial Supervisory Authority |
| DN |
Danmarks Nationalbank |
| D-SII |
Domestic Systemically Important Insurer |
| EIOPA |
European Insurance and Occupational Pensions Authority |
| FBA |
Financial Business Act |
| FPS |
Freedom to Provide Services |
| FSAP |
Financial Sector Assessment Program |
| IAIS |
International Association of Insurance Supervisors |
| ICP |
Insurance Core Principle |
| IFRS |
International Financial Reporting Standards |
| IORP |
Institution of Occupational Retirement Provision |
| LTG |
Long-Term Guarantee |
| MCR |
Minimum Capital Requirement |
| MIBFA |
Ministry of Industry, Business and Financial Affairs |
| MoU |
Memorandum of Understanding |
| ORSA |
Own Risk and Solvency Assessment |
| QRT |
Quantitative Reporting Template |
| SCR |
Solvency Capital Requirement |
| SFCR |
Solvency and Financial Condition Report |
| VA |
Volatility Adjustment |