The Insurance and Private Pensions Regulation and Supervision Agency (SEDDK) has announced the minimum capital required of an insurer for different lines of business.
The basic paidup capital of insurance companies and reinsurance companies cannot be less than TRY25m ($3.15m), said the SEDDK in a circular dated 9 October 2020.
In addition to this basic capital of TRY25m, insurers will have to pay in a minimum amount of capital separately for each branch of business for which they have to apply for a licence.
According to the circular, the capital requirement of a company that wants to provide services in all the 18 listed branches of non-life insurance, eg. aviation, accident, credit, etc, must be a minimum of TRY120m.
In the life branch, the total capital requirement of an insurer applying to provide services in all four branches of business cannot be less than TRY147m, comprising:
- Life TRY115m
- Accident TRY 3m
- Health TRY 3m
- Savings TRY 1m
- Basic TRY 25m
- Total TRY 147m
For reinsurance, the total minimum capital required is TRY85m.
Separately, on 18 October, the Turkish President Recep Tayyip Erdogan announced that the SEDDK has been established.
This followed the publication of a regulation related to the organisation of the SEDDK in the Official Gazette on 16 October. The regulation sets out SEDDK departments and organisational structure, duties, powers and responsibilities of the departments and service units.
Thus, the previous regulator, the Insurance Supervisory Board, which was under the Ministry of Treasury and Finance, has been disbanded.