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.
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 this issue in the operations of NOVIS, from both prudential and conduct of business perspective.
NOVIS will have to follow the following proceedings:
- to refrain from concluding insurance contracts which prescribe, for the client's benefit, investing or earning returns on part of the received premiums, if the total value of the assets that the party to proceedings invests for the benefit of clients in accordance with the statutes of the insurance funds under its management (hereinafter 'the asset value') as at the last day of a given calendar month is lower than the sum of the surrender values of all the insurance contracts concluded between the party to proceedings and its clients, being the values which the clients would be entitled to claim upon their early termination of the insurance contract, (hereinafter 'the surrender value') as at that date; as from the receipt of this Decision, the party to proceedings is required to comply with this obligation from the first day of the month following the month in which the asset value as at the last date is lower than the surrender value as at that date to the last day of the calendar month in which the asset value as at the last day is at least equal to the surrender value as at that date;
- to notify Narodna banka Slovenska of: (a) the aggregate outstanding balance of its clients' insurance accounts (excluding loyalty bonuses specified in the insurance contracts), broken down between the individual insurance funds under its management; (b) the surrender value; (c) the asset value, broken down between the individual insurance funds under its management and the underlying assets; (d) the outstanding balance of its bank accounts and of its other financial assets not included in point (c); as at 31 August 2020, by no later than ten days after receiving this Decision, and thereafter as at the last day of each calendar month, by no later than the tenth day of the following calendar month;
- to invest all received premiums in accordance with the contractual obligations under all of its insurance contracts with clients and in accordance with the statutes of the insurance funds under its management (hereinafter 'the interim measure').