Simˈpōzēəm
A traffic light system ushers in a risk-based regime
![peter skjoedt](https://solvencyiiwire.com/wp-content/uploads/2013/06/peter-skjoedt.png)
Structure and history
In Denmark life insurance companies and occupational pension funds are regulated under the same rules. Occupational pensions make up approximately 85% of the market based on premium income. The traditional pension product has been a with-profits contract based on nominal guarantees. This means that providers’ assumptions concerning insurance risk, interest rates and costs have to be set on the safe side. The assumptions must be set in a conservative way, so that, most likely, a surplus will arise. Thus the actual development of risks, return and costs would give rise to a surplus compared to the assumed (guaranteed) development. This surplus must be fairly distributed between policyholders and shareholders.![Nordic LTG Symposium 2](https://solvencyiiwire.com/wp-content/uploads/2013/06/Nordic-LTG-Symposium-2.png)