Regulator reprimands NordikLív over customer insurance transfer

The Insurance Supervisory Authority has issued three reprimands and one order to insurer NordikLív over the transfer of personal insurance customers from NordikLív to LÍV, KVF reports.

Føroya Banki decided in summer 2024 to begin offering personal insurance in cooperation with LÍV. The bank had previously worked with NordikLív for many years, with the Danish company Forenede Gruppeliv serving as its underwriter.

The new partnership was intended to give the bank’s customers a simpler solution with a Faroese provider while maintaining the same quality, service and competitive prices, Føroya Banki said.

Under the new agreement, all bank customers with personal insurance policies were to be transferred from their existing NordikLív agreements to new policies with LÍV.

However, some matters were not handled correctly during the process. The Insurance Supervisory Authority criticised the information provided to customers in connection with the transfer.

NordikLív has taken note of the reprimands, Føroya Banki said. The bank added that no customer had suffered a loss and that no one had complained or objected.

All customers will receive information letters from LÍV in the coming weeks.