The Danish insurance and pension industry contributed DKK 18.3bn to the national treasury in 2024, according to Insurance and Pension Denmark (I&P Denmark).

In a new report, the insurance and pension industry has calculated the total amount of taxes and fees the industry pays to the state, which includes the PAL tax that Danes pay on their pension returns.

It also includes the special tax on the sector, introduced in 2023, which I&P Denmark recently revealed amounted to DKK 250m in its first year.

Commenting, I&P Denmark CEO, Kent Damsgaard, said: “Our industry makes a massive contribution to society, both through our daily work and our tax payments. DKK 18.3bn came into the Ministry of Taxation's office last year alone. This is a larger amount than what the state receives from e.g. property value taxation from all Danes.”

As a result, he is calling on politicians to focus much more on how they can support growth and value creation in society through good framework conditions for the insurance and pension industry.

“It's striking that the industry generates so much revenue for the treasury and good jobs all over Denmark, while the political focus on supporting and promoting the industry's framework conditions is often overlooked.

“I have no doubt at all that there would be huge potential if the government set up a growth team or partnership to look at how the industry can contribute even more to the development of society through strengthened framework conditions,” he said.

Furthermore, Damsgaard highlighted how insurance and pension companies share responsibility for important societal tasks. He said the industries are “well-integrated” into the Danish welfare society, and the core services of pension savings and financial assistance in the event of an accident are crucial to Danes’ everyday lives.

“In addition, the industry invests significantly in e.g. green transition, prevention and nursing home places. Of course, the starting point is always that companies must deliver returns and security to their customers. But at the same time, the industry helps solve some of the most important societal challenges we face – in addition to contributing to state finances,” Damsgaard concluded.

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