NBS warns about Novis
The central bank NBS issued an injunction at the beginning of September banning Novis, an insurer, from selling investment insurance policies. It suspects the insurer has been investing lower sums than required by legislation. This hurt clients who would receive less money than mandated by law in early cancellation of the policy. The injunction applies to all countries where Novis is active (ten EU countries, plus Iceland). New legislation that took effect this January requires insurers to invest at least 50% of collected premiums in the first year of a policy, 60% in the second year and 70% in the third. Novis says it complies with the regulation.
Earlier this year, NBS fined Novis €175,000, the highest ever fine NBS imposed on any insurer. The fine came in response to unfair business practices, such as incorrect information provided to clients and unacceptable insurance terms.