Magyar Nemzeti Bank (MNB) conducted a thorough investigation of NN Biztosító Zrt (NN Biztosító), auditing the period from November 5, 2019 until the end of the investigation. The investigation proved that NN Biztosító did not comply with the legal provisions related to the protection of the IT system in several aspects, so problems and deficiencies arose with regard to license control, business continuity plans and license management, the Hungarian National Bank wrote in its announcement. .
The Central Bank also revealed several cases of non-compliance with the law with regard to the contractual terms of life insurance products. For example, it identified the possibility of irregular deviations from the investment policy in the case of asset funds providing life insurance products linked to investment units and with regard to the insurance company product reviews. It demonstrated the lack of an annual substantive review and its insufficient documentation.
In many respects, providing information to clients was not enough.
Due to legal violations, the Central Bank imposed a supervisory fine of HUF 11 million and an additional consumer protection fine of HUF 8 million on NN Biztosító, obligating it to operate in accordance with the law. For most of the findings, the insurer must provide MNB with data on measures taken to eliminate legal violations by December 31, 2023.
