DENMARK Law and Practice Contributed by: Josefine Movin Østergaard and Johannes Hedegaard, Bruun & Hjejle
9. Legislative and Regulatory Key Trends 9.1 Regulatory Focus Areas and Supervisory Trends The Danish Financial Supervisory Authority ( Finanstil- synet ) focuses on four key areas that influence insurer behaviour and dispute risk. Consumer protection ( god skik ) is the most actively enforced area. Conduct-of-business rules require insurers to act honestly towards customers, provide clear pre-contractual disclosure, and avoid unfair terms restricting policyholder mobility. The Danish Financial Supervisory Authority has issued enforce- ment orders against pension providers with unjustified transfer restrictions, and disputes over inadequate disclosure remain a recurring source of complaints before the Danish Insurance Complaints Board ( Ank- enævnet for Forsikring ). Claims handling draws scrutiny through the complaint machinery. Common disputes involve insurers enforc- ing claim-notification deadlines that policyholders allege were not properly communicated, and inad- equate advice at point of sale. Operational resilience is a growing priority. Denmark implemented the EU Digital Operational Resilience Act (DORA) through Lov nr. 481/2024, requiring insurers to maintain IT risk management frameworks, report critical incidents to Finanstilsynet , and ensure audit rights over third-party IT providers.
ESG is entering the regulatory landscape through EU- level frameworks (SFDR, Solvency II delegated acts), though specific Danish enforcement actions target- ing insurers on sustainability have not yet emerged. Consumer protection and claims handling present the highest current dispute risk, while DORA compliance and ESG integration represent emerging areas where enforcement is likely to intensify. 9.2 Forthcoming Reforms and Market Impact There have not been any specific legislative or regu- latory developments that would significantly affect insurance coverage and insurance litigation in Den- mark. However, there is a general trend towards more detailed and stringent regulatory requirements, both for financial institutions such as banks and in relation to product safety standards. For financial institutions, this increased regulation may increase the exposure of management members to liability claims and potential fines, in turn triggering payouts under D&O insurance. Similarly, in the area of product safety, new regula- tions can expose manufacturers and distributors to potential liability claims. An example of this is the Gen- eral Product Safety Regulation (EU 2023/988) (GPSR), which became applicable on 13 December 2024. The GPSR introduces stricter requirements regarding the safety of products sold to consumers, which could have an impact on product liability insurers.
101 I NSURANCE L I T IGATI O N 2026
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