7 July 2014
The rate of the Storm Flood Levy will increase from its current rate of DKK30 per policy to DKK60 per policy with effect from the third quarter of 2014. This effectively means that insurers should start to charge and collect the levy at the new rate from 1 July 2014, and then pay the new rate with the third quarter return due for submission on 15 October 2014.
DKK10 of the increase is a permanent change to the Levy and DKK20 is a temporary change. It is anticipated the latter will be stopped by 31 December 2017, although the precise timing will depend on the economic position of the storm surge scheme at the time. The Storm Council will publish a notice on its homepage in due time.
The increased rate arises from a decision by the Danish Parliament, following the storms of December 2013, to increase compensation payments for damages due to storm surge. Parliament passed the changes in the Storm Surge Bill on 10 April 2014 and they became law on 17 April 2014.