News Middle East17 Sep 2018

Turkey:November to see launch of 1st credit insurance product for SMEs

| 17 Sep 2018

The first credit insurance policy for small and medium sized businesses will be issued in November, says Halk Sigorta general manager Bulent Karan.

This is part of the new government-funded new commercial credit insurance system, which aims to protect SMEs against collection risks. Halk Sigorta, a subsidiary of state-owned lender Halkbank, has been picked to spearhead the scheme, reports Insurance Gazette.

Mr Karan said, “The outlines of the system have begun to take shape. As is known, the structure of the insurance that will be available is directed towards corporate firms. This system will be directed at SMEs. We do not compete with existing products. We expect the relevant legislation to be finalised in October. We can sell products in November.

“Every company that has a licence in this branch, with the centrally determined price and product collateral, can sell this."

Halk Sigorta generated a premium of TRY1.5bn ($243m) in 2017, an increase of 43% over the previous year and became one of the top 10 companies in the non-life sector. In the first 7 months of the year, premium revenue totalled TRY821m, an increase of 38% over the corresponding period last year. The company aims to reach premiums of TRY1.7bn for this year as a whole.



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