Understanding Denmark’s (re) insurance framework: insights and trends for 2025

Experts from Kennedys’ office in Denmark have responded to questions relating to the Danish Insurance and Reinsurance regulations in the 2025 edition of the ICLG Insurance and Reinsurance Guide.

Key highlights

• Denmark's insurance and reinsurance market is supervised and enforced by the Danish Financial Supervisory Authority (FSA), ensuring compliance with the Danish Insurance Business Act.
• All insurers and reinsurers must be licensed, with specific rules for EU/EEA companies and additional requirements for non-EU insurers like those in the US.
• Compulsory Insurance – Motor vehicle liability and workers' compensation are mandatory and professional liability insurance is required for some professions.
• Consumer Protections – Policyholders benefit from strong legal safeguards under the Danish Insurance Contracts Act.
• Claims & Disputes –Direct actions against insurers is permitted in some cases, though direct claims against reinsurers typically require contractual agreements.
• Legal & Arbitration Processes – Disputes are resolved through Danish courts or arbitration, with arbitration agreements generally upheld.

Emerging trends and compliance challenges

• Evolving regulations - Insurers must adapt to new environmental, social and governance (ESG)  standards.
• Digital Transformation – Insurtech innovations and AI-driven underwriting are reshaping the industry bringing both opportunities and new risks.
• New Risk Factors – Cybersecurity threats, climate-related insurance claims, and ESG compliance are growing concerns.

As Denmark’s insurance landscape evolves, staying ahead of regulatory changes, emerging risks and digital transformation is crucial.

This information was originally published in the Denmark Insurance and Reinsurance chapter of the 2025 International Comparative Legal Guide (ICLG).