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
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