EIOPA and NBS Impose Operational Restrictions on NOVIS Insurance
EIOPA has been working closely with the National Bank of Slovenia (NBS) and the other relevant national competent authorities to address issues in the operations of NOVIS Insurance Company, from both prudential and conduct of business perspective. To this end, EIOPA announced that NBS has issued an interim measure to NOVIS Insurance Company, on November 05, 2020, prohibiting free disposal of its assets. The measure is intended to ensure the adequate protection of policyholders throughout the European Economic Area.
Additionally, in September 2020, NBS had issued an interim measure banning new business from NOVIS Insurance Company until specified conditions are fulfilled by NOVIS. The reason for the interim measure was the reasonable suspicion of NBS that NOVIS was not investing premiums earned under unit-linked insurance contracts to a sufficient extent, meaning not at the level required under the terms and conditions of insurance contracts or not even at the surrender value, which the clients would be entitled to claim on the early termination of the insurance contract. The temporary preventive measure prohibits NOVIS from concluding any new unit-linked insurance contracts in the case that the extent of premium investments under all existing contracts has not reached the stipulated level. The interim measure also obliges NOVIS to ensure that all premiums received from clients after its receipt of the interim measure decision are invested to the correct extent (as defined by terms and conditions of all insurance contracts). The measure applies to NOVIS's unit-linked insurance contracts concluded in any of the countries in which NOVIS conducts such business—namely, Slovakia, Czechia, Italy, Hungary, Poland, Germany, Austria, Sweden, Finland, Iceland, and Lithuania. The measure is expected to remain in force until the sanction proceedings in this matter are duly concluded and NOVIS must comply with its obligations thereunder for the duration of that period.
NOVIS is a life insurance undertaking established in 2014 in Slovakia and supervised by NBS. Besides its home market, NOVIS pursues life insurance activity through freedom of establishment in Austria, the Czech Republic, and Germany and through freedom to provide services in Finland, Hungary, Iceland, Italy, Lithuania, Poland, and Sweden.
Related Link: Press Release
Keywords: Europe, EU, Insurance, Interim Measure, Cross-Border Cooperation, NOVIS, NBS, Slovakia, Insurance Contracts, EIOPA
Previous Article
BaFin Consults on Multiple Changes Resulting from CRR2 and CRD5Next Article
FINMA Revises Circular on Liquidity Risks for BanksRelated Articles
EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS Amends Notice on Related Party Transactions of Banks
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB Amends Guideline on Euro Short-Term Rate
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA Consults on Standards Related to FRTB-SA
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA Proposes Rules Related to IRB Approach for Credit Risk
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
EU Amends CRR and Securitization Regulation in Response to Pandemic
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury Announces G7 Agreement on Green Agenda Ahead of COP26
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.
