The Insurance and Private Pension Regulation and Supervision Authority (SEDDK) has published a revised regulation in the Official Gazette, requiring support service providers offering damage management and assistance services to obtain permission from the regulator to operate.
Capital requirement
Under the new rules, an insurance support service provider must have a minimum equity capital of TRY250m ($5.3m).
Providers already in operation are given a grace period until the end of 2030 to comply with the miminum capital requirement. The timeline for their compliance is:
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have at least 25% of the minimum equity requirement by 31 December 2026,
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have at least 50% by 31 December 2028,
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meet the full requirement by 31 December 2030.
The minimum capital may be reduced by up to half or increased by up to 100%, depending on the volume and nature of the work carried out by providers. Furthermore, the equity amount will be increased at the beginning of each calendar year in line with the annual change rate of the Domestic Producer Price Index (DPPI) announced by the Turkish Statistical Institute.
Insurance support service providers include organisations that provide insurers with damage assessments and claims processing, as well as emergency, roadside, home and workplace assistance on a 24/7 basis.
Other stipulations mandate a support service provider to also:
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locate their headquarters in Turkiye
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be established as a limited liability company.
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have sufficient physical, technical, systemic and administrative infrastructure to offer their services
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ensure their founders possess financial strength and reputation, are not bankrupt or have declared insolvency, and have not been convicted of any crimes.
The revised regulation also stipulates that the financial strength and reputation of the founders will be assessed taking into account their assets, liabilities and obligations, tax and social security debts, credit history, and other criteria deemed appropriate by the Authority.
Damage assessors
The regulation also establishes working procedures and principles for damage assessors. Under it, individuals and legal entities, other than those employed by companies under service contracts, must obtain permission from the SEDDK to conduct loss adjusting activities.
For individuals, the requirements include being a resident of Turkiye, not being bankrupt, holding at least a two-year higher education degree, having at least two years of experience in claims processing in the insurance sector, and successfully completing the training provided by the Insurance Training Centre.
The regulation stipulates that existing damage investigators must comply with the new provisions by 31 December 2026. However, among them, those who can document providing services to companies will be exempt from the higher education degree requirement.