The Insurance and Private Pension Regulation and Supervision Institution (SEDDK) has announced revisions to the Regulations for Insurance and Reinsurance Brokers.
The “Regulation Amending the Regulation on Insurance and Reinsurance Brokers,” prepared by SEDDK, has been officially published in today’s issue of the Official Gazette, taking immediate effect.
As per the changes, the minimum paid-up capital for legal entities and brokers has been increased from 250,000 Turkish liras to 2.5 million Turkish liras, with the proviso that it should not fall below the amount determined by the Ministry of Trade based on the company type. Additionally, for each license application in the realms of life and non-life insurance, an additional fee has been raised from 50,000 Turkish liras to 500,000 Turkish liras.
For reinsurance license applications, an additional 1 million lira has been specified, and it is mandated that all shares must be registered. The minimum paid-up capital for decentralized organizations established by brokers has also been raised from 25,000 Turkish liras to 250,000 Turkish liras.
The announcement highlights SEDDK’s authority to supervise broker activities and, when necessary, suspend them. It is emphasized that licenses may be revoked if brokers fail to adhere to legal and financial requirements.
Furthermore, the institution has the discretion to modify specific fixed and proportional amounts. The statement clarifies that these amendments will be updated in accordance with the annual domestic producer price index increase rate announced by the Turkish Statistical Institute.
source: aa.com.tr / prepared by Melisa Beğiç