Cross-Border Cooperation Platform on NOVIS: Národná banka Slovenska issues a new decision

Národná banka Slovenska (NBS), the Slovakian national supervisory authority, has issued today a statement regarding the decision on investment infringement identified in the onsite inspection against NOVIS Insurance Company, NOVIS Versicherungsgesellschaft, NOVIS Compagnia di Assicurazioni, NOVIS Poisťovňa a.s. (NOVIS).

The onsite inspection determined that NOVIS breached its duty to act prudently because it had invested premiums received from clients to a lesser extent than it had committed itself to in its insurance contracts. Therefore, in the decision NBS imposes on NOVIS, among other measures, the obligation to invest all premiums in accordance with the insurance contracts. 

In order to ensure the adequate protection of policyholders throughout the European Economic Area, EIOPA has been working closely with NBS and the other national competent authorities through its cooperation platform to address the operations of NOVIS, from both prudential and conduct of business perspective. 

The full text of the press release and the measure taken by NBS can be found here

Background

NOVIS is a life insurance undertaking established in 2014 in Slovakia and supervised by the 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.