The Danish Financial Supervisory Authority has issued enforcement orders to Danica Pension, Livsforsikringsaktieselskab and Velliv Pension & Livsforsikring A/S requiring them to explain how they will restore financial balance in their health and accident insurance (SUL) business, after identifying a risk that the business model is not economically sustainable. SUL has been required to be financially self-sustaining since 2022, but the supervisor notes that many life insurers continue to report losses in this line, with premium increases not keeping pace with rising claims costs. Finanstilsynet warns that persistent losses could lead to pension savers indirectly covering SUL deficits and thereby paying disproportionately high prices for savings products. The two firms must prepare a statement and plan covering the SUL business area’s financial position and outlook. Finanstilsynet will continue inspections in the area and maintains supervisory focus on products covering loss of earning capacity, regardless of whether they are offered as non-life insurance through SUL business or structured as life insurance products.
Danish Finanstilsynet 2025-09-02
Danish Financial Supervisory Authority orders Danica Pension and Velliv to set out how they will bring health and accident insurance into balance
The Danish Financial Supervisory Authority has ordered Danica Pension and Velliv Pension & Livsforsikring A/S to address financial imbalances in their health and accident insurance business. The authority warns of ongoing losses, cautioning that pension savers may face high costs if deficits persist. Both firms must submit a plan detailing the financial position and outlook for their SUL business.