On 1 June 2023, Národná banka Slovenska (NBS), the Slovak national supervisory authority, withdrew the authorisation of NOVIS Insurance Company, NOVIS Versicherungsgesellschaft, NOVIS Compagnia di Assicurazioni and NOVIS Poisťovňa a.s. (collectively referred to as “NOVIS”) and petitioned the relevant competent Slovak court to dissolve NOVIS and appoint a liquidator for the company. However, a liquidator has still not been appointed to this day.
NOVIS has been prohibited from conducting new insurance business since June 2023 and can only carry out activities necessary to service existing insurance contracts, i.e. collect premiums, enforce its claims and settle its liabilities. NOVIS is subject only to limited supervision in anticipation of the possible appointment of a liquidator. Due to pending court procedures, it is currently uncertain if and when that decision will be taken by the court.
The current situation may lead to consumer detriment. Policyholders may face the risk of financial losses as they continue to pay premiums to a company that has no authorisation, for which the NBS requested liquidation, and which is under limited supervision by the NBS.
Given these circumstances, the European Insurance and Occupational Pensions Authority (EIOPA), in its role as coordinator of the NOVIS cooperation platform, is informing policyholders of NOVIS about the stalled liquidation process and the risks associated with it. Against the lack of progress, policyholders need to carefully re-evaluate their options based on the information available and, having sought professional advice, decide what the best course of action for them would be, including, among others, the cessation of premium payment or the surrender of their contracts.
Some of the most frequently asked questions and answers that may be useful for policyholders of NOVIS are provided below.
Information by national supervisors
Policyholders are also invited to consult the information available on the website of their national supervisory authority:
- Austria – Finanzmarktaufsicht
- Czechia – Česká národní banka
- Germany – Bundesanstalt für Finanzdienstleistungsaufsicht
- Hungary – Magyar Nemzeti Bank
- Iceland – Seðlabanki Íslands
- Italy – Istituto per la vigilanza sulle assicurazioni
- Lithuania – Lietuvos Bankas
- Poland – Komisja Nadzoru Finansowego
- Slovakia – Národná banka Slovenska