The Terrorism Insurance Act was adopted by the Danish parliament on June 17, 2008. The purpose of the Act was to establish a scheme to provide insurance coverage for property losses in the event of NBCR-terrorism. The Act establishes which non-life insurance companies are covered by the Terroism Insurance Scheme as well as their obligations in accordance with the scheme.
The work, composition and appointment of the Terrorism Insurance Council is defined in the Executive Order nr. 503 of May 21, 2012. The Council is under the Ministry of Industry, Business and Financial Affairs and the Danish Financial Supervisory Authority acts as secretariat to the Council.
The Terrorism Insurcance Council decides whether an event arising from terror has been subject to the use of nuclear, biological, chemical or radioactive (NBCR) weapons and thus whether the damages are covered by the scheme. Based on an evaluation of the reinsurance market and the capacity of the non-life insurance industry, the Terrorism Insurance Council makes a yearly recommendation by November 15 to the Minister as to the magnitude of the following year’s total own risk of the non-life insurance industry, which establishes when the reinsurance gurantee should come into effect.
The compostition of the Terrorism Insurance Council
The Terrrorism Insurance Council consists of 4 members and 4 alternates from the following authoritites and organizations:
- Ministry of Finance
- Ministry of Industry, Business and Financial Affairs
- The Danish Financial Supervisory Authority
- The Terrorism Pool for Non-Life Insurance
The members, who are required to have legal or financial knowledge, are appointed by the Minister for a four-year long period and can be reappointed. The member from the Ministry of Industry, Business and Financial Affairs acts as a chairman of the Council.
- Head of Division Julie Sonne, Ministry of Industry, Business and Financial Affairs
Alternate: Head of Division, Kristina Astrup Blomquist, Ministry of Industry, Business and Financial Affairs
- Head of Division Thomas Larsen, Ministry of Finance
- Deputy Director General Carsten Brogaard, The Danish Financial Supervisory Authority
- Director, Commercial Insurance, Peter Flemmer, Alm. Brand (nominated by the Terrorism Pool)
- Head of Section, Frederik Haurum Frigaard Munk, Ministry of Finance
- Director, Birgitta Nielsen, The Danish Financial Supervisory Authority
- CRO, Ole Hesselager, Tryg