Turkey: Lawmakers approve law to establish national reinsurer
Source: Middle East Insurance Review | Feb 2019
The Turkish Grand National Assembly has approved a law providing for the establishment of Turk Reasurans (Turkish Reinsurance) to insure risks that the insurance sector is unable to cover and to develop new products in line with market needs.
According to the new law, Turkish Reinsurance is to be operational after a general meeting to be held in three months’ time, reported Insurance Gazette, adding that the reinsurer will cover risks in the furniture, paint, plastics, ginning, leather and textile sectors.
The company’s activities, purpose, resources, capital structure, shares, organisation, accounts and issues related to the distribution of profits will be set out in the articles of association. Its insurance transactions are exempt from tax.
Lawmakers also approve a legislative amendment to allow DASK or Turkish Catastrophe Insurance Pool to carry out technical operations through a company to be established for this purpose. Currently, the technical work of DASK and the execution of operations are carried out by an insurer selected by tender every five years by the Minister of Environment and Urbanisation.
The amendment aims to pave the way for the establishment of a fixed structure in order to maintain DASK’s corporate memory and make its operational processes more effective.
DASK will also be able to partner with the international insurers or reinsurers deemed appropriate by the Minister of Environment and Urbanisation.
In addition, DASK will be put into action as a facilitator in order to cover losses that may arise as a result of special risks such as nuclear risks. M