Regarding the product Wealth Insuring, NOVIS has decided not to offer this product anymore, mainly as a result of a new
European law – Directive (EU) 2016/97 on insurance distribution (IDD). The reason is that the Directive in question requires a sales strategy within which this product may be offered mainly to clients with higher education and experience with the financial market. A similar view was also expressed by several regulators throughout Europe.
However, this is not in line with the general strategy of NOVIS, since NOVIS strives to offer highly attractive insurance products that may be sold to a much broader target group. For this reason NOVIS is going to offer a new product.
NOVIS Insurance Company is constantly gaining experience in all of the countries where it operates and receiving feedback from customers and regulators. On the basis of this experience and new opportunities arising throughout the world, NOVIS is developing a new product (NOVIS Life Savings Plan) that will be available to Icelandic residents.
In contrast with the previous product, NOVIS Life Savings Plan will offer completely new insurance funds. The new product will be based on 3 insurance funds, each of which covers very important and attractive topic:
- low volatility fixed income fund
- equity fund with a very low cost ratio
- sustainability fund that invests only in underlying assets fulfilling the highest criteria for responsible investment.
All of these three new insurance funds will be covered nearly exclusively by underlying assets in foreign currency so that in case of devaluation of Icelandic króna (ISK), the policyholders have a special economic protection.
The new product will fulfill the above-mentioned criteria within the meaning of the new directive on insurance distribution and is, therefore, suitable for distribution towards a much bigger part of the population.
NOVIS would like to emphasize that this change of the sales strategy has absolutely no impact on the existing clients. All Wealth Insuring contracts remain valid (these contracts are whole-life contracts in nature, therefore providing insurance coverage until the policy holder passes away.