28 April 2021

National Bank of Slovakia decision imposing sanctions and corrective measures for investment infringement by NOVIS

The Central Bank of Iceland Financial Supervisory Authority (FSA Iceland) makes reference to previous press releases concerning the National Bank of Slovakia’s (Národná banka Slovenska, NBS) decisions on NOVIS Versicherungsgesellschaft, NOVIS Compagnia di Assicurazioni, NOVIS Poisťovňa a.s. (NOVIS), most recently on 25 February 2021.

On 27 April 2021, NBS issued a press release announcing its decision on NOVIS’ infringement of its obligation to invest policyholders’ premiums in accordance with the terms of their insurance contracts.

An on-site inspection carried out by NBS has revealed that NOVIS violated its obligation by not investing the full amount of policyholders’ premiums in accordance with their insurance contracts. In view of this, NBS has imposed a corrective measure on NOVIS obliging it to invest all premiums as is specified in the contracts. NBS previously demanded the above with an interim decision in September 2020. NBS plans to publish information on other measures entailed in its decision later this year: on 11 May, 1 July, and 1 October 2021.

FSA Iceland has worked closely with NBS, the European Insurance and Occupational Pensions Authority (EIOPA), and other competent authorities via a special cooperation forum focusing on matters relating to the monitoring of prudence and business conduct by NOVIS.
Both the press release and NBS’ decision can be found on the NBS website. EIOPA‘s announcement of NBS‘s decision can be found here.

FSA Iceland previously issued press releases about NOVIS on 25 February 2021, 13 November 2020, 23 October 2020, 29 September 2020, and 18 September 2020.