Insurance in Turkey
The establishment of insurance and reinsurance companies and their activities in Turkey are regulated by the Insurance Law, the Turkish Commercial Code and the Code of Obligations and certain other laws and the secondary legislation entered into force thereunder.
An insurance company can only be established as a joint stock company or a cooperative. There is no license requirement for establishment. However, an insurance company, once established, must obtain a license from the Undersecretariat of Treasury to start its operations. Each license is speciic to a certain branch of insurance (i.e. life, non-life, life-pension or re-insurance) and each insurance company must hold relevant license to operate in the corresponding market.
The legislation provides for certain requirements in relation to the shareholders, the board members and the capital adequacy and reserve requirements of an insurance company (such as minimum share capital, educational background of the board members etc.)
The Insurance Association of Turkey is a professional organisation and as per the Insurance Law, all insurance and reinsurance companies must be a member of the Insurance Association of Turkey. According to the data provided by the Insurance Association of Turkey, it has a total of sixty-ive members and currently, thirtynine non-life insurance companies, twenty-three life and pension companies, and threereinsurance company are actively operating. Lists of the insurance companies can be found on the Association’s
website at the following links:
Non-Life Companies
Life and Pension Companies
Reinsurance Companies
According to the Insurance Law, insurable interests of the residents of Turkey have to be insured in Turkey by the insurance companies operating in Turkey; however certain insurance policies can be purchased abroad, such as transportation insurance for goods subject to export and import, liability insurances arising from the operation of ships, life insurances.
According to the Turkish Commercial Code, there are two types of insurance: the loss insurance (property insurance and liability insurance) and personal insurance (life insurance, accident insurance and health insurance). A wide range of diferent insurances are ofered by the insurance companies, such as ire insurance, earthquake insurance, lood insurance, construction insurance (construction all-risk insurance), loss of proit insurance, credit insurance (for trade receivables), third party liability insurance, professional liability insurance, employers liability insurance, product liability insurance, machinery breakdown insurance, electronic equipment insurance, glass insurance, land vehicles insurance (voluntary), insurance on risk arising out of transportation of goods, health insurance. Insurance, as a principle, is procured on a voluntary basis, however there are certain mandatory insurances that must be procured pursuant various laws and regulations (such as traic insurance, mandatory earthquake insurance (DASK), transportation insurances for passenger transportation through land route and sea transportation, dangerous waste liability insurance).
Director and oicer liability insurance is available at a number of insurance companies in Turkey covering losses arising out of or caused while performing their duties during their term of oice. Also, general terms and conditions of the indemnity insurance (kefalet sigortası) have recently been introduced by the Undersecretariat of Treasury. Whilst the range of products is limited and the market for this insurance is still developing, according to the general terms and conditions of the indemnity insurance, insurance companies in Turkey can ofer to their customers indemnity insurance providing coverages such as advance payment coverage (against losses arising of non-repayment of the advance), manufacturing/maintenance/repair coverage (against losses arising out of workmanship deiciencies found after the delivery of the work), idelity guarantee insurance (against the losses of the employer arising out of fraud or embezzling of an employee), agreement coverage (against losses arising from the nonperformance of the obligations under an agreement).
Türk Eximbank has special export credit insurance programs since 1989 which provide cover for Turkish exporters against commercial and political risks. Türk Eximbank’s insurance programs are composed of two schemes being short-term export credit insurance, and medium- and long-term export credit insurance. Detailed information can be found at the following links: