The Regulation Regarding Insurance Support Services was
published in Official Gazette number 29459 on 28 August 2015
("Regulation"), entering into force three months after
that date. The Regulation outlines principles and procedures for
procurement of support services by corporations, within the scope
of Insurance Law number 5684 and the Law on Personal Pension
Savings and Investment System number 4631. Existing agreements
between corporations and support service providers which fall
within the Regulation's scope must be brought in line with the
new requirements by 28 August 2016.
Support services which fall within the Regulation's scope
are listed in Article 4. Key provisions introduced by the
definition: The Regulation prohibits procurement of
services from support service providers which relate to the essence
of the insurance business and can only be provided by persons and
institutes within the scope of the Insurance Law. Specific
exceptions are stated in Article 4.
General principles on
procurement of service: Detailed principles and
procedures for procurement of support services are outlined in
Article 5, with the most significant including:
If requested, before support services
are procured, corporations must send a report to the Insurance
Information and Monitoring Center. The report outlines the risks
which could arise from procurement of the support services, related
risk-management, as well as expected utility and cost assessments.
The report's format is set by the Undersecretariat of Treasury
Procurement of support services in
line with the Regulation will not remove any liability for the
service procurer which arises from the insurance agreement or
The support service provider must be
established in Turkey.
Principles for support
service providers: The Regulation outlines certain
requirements and restrictions for support service providers.
Accordingly, support service providers must have:
An organizational structure,
technical equipment and educated staff which are sufficient to
conduct services within the Regulation's scope.
Sufficient information and experience
in the related field.
Further, support service providers must not:
Have had any powers removed or
restricted by the competent authorities within the last five years,
either inside or outside Turkey.
Act as an agent for a corporation and
provide support services to the same corporation.
requirements: Article 8 outlines minimum content for
agreements executed between corporations and support service
Supervision: Support service providers
are subject to Treasury supervision.
Please see this link for the full text of the Regulation (only
available in Turkish).
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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