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 ArticleBaFin Consults on Multiple Changes Resulting from CRR2 and CRD5
Next ArticleFINMA Revises Circular on Liquidity Risks for Banks
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.