Insurance and Pension Denmark (I&P Denmark) has renewed its call for the abolition of the country's financial sector tax after the new government's programme indicated that the levy on insurers and pension providers will remain in place.

While welcoming plans for tripartite negotiations on future pension reforms and measures to increase pension flexibility, I&P Denmark said it was disappointed that the government had not addressed the sector tax, which it argues increases costs for savers and policyholders.

I&P Denmark chief executive Kent Damsgaard said: “We may have the best pension system in the world in Denmark, and politicians, labour market parties and our industry share a responsibility to protect and preserve it.

“That is why it is sensible that the government is proposing a tripartite agreement to ensure that any adjustments to the system under a Welfare Agreement 2.0 are made on a well-informed and solid basis.”

On the special tax, which the association has long campaigned to abolish, Damsgaard highlighted that Denmark is the only country to extend the levy to the insurance and pension sectors.

“It is a tax that makes it more expensive for Danes to provide security for their homes, finances and families, so I would strongly urge that the special tax be abolished when the government addresses corporation tax,” he argued.

I&P Denmark also welcomed proposals to allow people to pause annuity pension payments if they return to work and to bring forward pension access to five years before the state pension age.

Beyond pension policy, the association welcomed the government's plans to establish a Prevention Fund, arguing that greater focus on prevention could help address the growing number of people leaving the workforce due to ill health.

Damsgaard said prevention had rarely featured so prominently in a government programme and highlighted stress-related illness as an area where the industry could contribute to wider efforts.

The association also backed the government's ambition to strengthen conditions for businesses through the reduction of administrative burdens and continued investment in energy infrastructure.

In addition, I&P Denmark supported plans to establish a working group to examine how institutional investors' opportunities to invest in growth companies could be strengthened.

“The regulatory burden on the insurance and pensions sector is growing day by day, so I am really pleased that the government intends to carry out a systematic review of the regulatory burden on Danish businesses and is now setting a specific target to reduce these burdens.

“The fight against these burdens has only just begun, so it is important that the government maintains the pace and momentum both in Denmark and in terms of Denmark’s efforts within the EU,” Damsgaard added.

The association also expressed support for proposals relating to independent care homes, the use of artificial intelligence and the creation of a cross-disciplinary taskforce to combat financial crime.

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