The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) plans to release soon a new set of regulations on participation insurance, also known as takaful.
Mr Davut Mentes, SEDDK president, said of the new framework, “It's a fresh perspective. It will be a Turkish model that incorporates generally accepted international principles.”
One principle is the separate reporting of the insured pool from the company pool, according to a report on the news platform, Finansi Gundemi.
Mr Mentes said, “There's an international practice where insureds or participants create their pools based on mutual support, and the company participates in this process as the operator. This is the takaful model. We've now revisited the legislation, preserving both global practices and the Turkish model. We will open this for review soon. We've received positive feedback from international circles on this matter.”
He indicated that the new rules would further integrate participation insurance into the insurance ecosystem, because there is still a segment of the population that remains aloof from insurance.