The amendments made to the Insurance Agents Regulation have updated the requirements for the authorization and operational permits of agents, revised regulations regarding the monitoring of activities, and expanded the responsibilities of agents. The authority of the Ministry of Treasury and Finance under the regulation has been transferred to the Insurance and Private Pension Regulation and Supervision Authority.
The Regulation on Amendments to the Insurance Agents Regulation, published in the Official Gazette on January 22, 2025, with the number 32790 ("Amendment Regulation"), brought changes to the Insurance Agents Regulation ("Regulation"). The changes are outlined below in a comparative format, highlighting both the previous and new versions as published in the Official Gazette on January 22, 2025:
- According to Article 6 of the Regulation, individuals holding the title of individual pension agent must pass a qualification exam and complete the professional experience period listed in Appendix 1 to qualify as technical personnel. With this addition, individual pension agents must pass the qualification exam and complete the required professional experience period to become technical personnel. The calculation of the required professional experience period now also takes into account the period spent as an individual pension agent.
- Regarding minimum paid-up capital and assets, it has been stipulated that the assets of individual agents must be no less than the minimum paid-up capital required for corporate agents. The required minimum paid-up capital for corporate agents has been set at 3,250,000 TL, provided it is not below the amount specified by the Ministry of Commerce for the type of company. Additionally, new minimum capital requirements have been introduced for agencies operating with branches. For agencies opening branches, the minimum capital requirement has been set at 4,000,000 TL for the headquarters and 325,000 TL for each branch. Agencies engaged in remote sales must have a minimum capital of 4,000,000 TL, with a new condition requiring them to have equity equal to at least 4% of the premium amount mediated by the end of the year. Furthermore, 50% of the minimum capital must consist of cash, deposits, or convertible investment instruments.
- In the previous regulation, applications from agencies with completed documents were submitted to the Ministry via TOBB. After the Ministry's evaluation, eligible agencies were reported to TOBB for registration in the registry. With the new regulation, this process has been digitized and expedited. Applications will now be evaluated directly by TOBB and submitted electronically for approval by the Institution. Agencies deemed eligible by the Institution will be reported to TOBB for registration, and this notification will serve as their suitability certificate. Additionally, agencies receiving a suitability certificate must apply to TOBB for registry within six months. This change aims to streamline and expedite the process, facilitating agencies' ability to begin their activities.
- The regulation now provides clearer rules regarding the use of promotional and corporate identity materials by agents. According to the new regulation, agents and their branches must explicitly state their agency title on letterheads, posters, advertisements, signage, websites, and all other electronic platforms.
- Furthermore, insurance agents operating in the sector are prohibited from using the word "insurance" alone; it may only be used in conjunction with "agency" or "brokerage."
- Additionally, agents are forbidden from using names, logos, symbols, or other corporate identity elements that could create the impression that they are an insurance company or imply that they engage in business outside their agency activities. This regulation, which addresses misleading and deceptive practices, aims to enhance trust within the sector and protect consumers from misleading actions.
- Under the Amendment Regulation, agencies found to be in violation of the legislation during inspections and audits by the Institution will be warned. Following the warning, the situation will be evaluated, and based on the evaluation, the agency's activities may be temporarily suspended for up to six months, or their suitability certificates may be revoked. After temporary suspension, these agencies will be reported to TOBB and TSB. The financial condition of agents will also be monitored, and if their financial situation negatively impacts insurance companies, the relevant companies will be notified. If the situation does not improve despite measures being taken, the agency's activities may again be temporarily suspended for up to six months.
- If an agency's activities are temporarily suspended and the same violation is repeated within a year, the agency's suitability certificate will be revoked. Additionally, to protect the rights and interests of individuals in the insurance contracts, the agency's brokerage activities may be immediately suspended in emergency situations, with the same procedures following the suspension.
- Agencies subject to a decision of dismissal from the profession will be removed from the registry, and this information will be kept in a separate list by TOBB and transmitted electronically to TSB. Measures applied to agents will also apply to technical personnel, with the possibility of suspending their activities or revoking their authority to act.
- Finally, the newly introduced minimum paid-up capital requirement in the Regulation will not apply to existing agents and individuals and legal entities who have applied to the chambers before the publication date of the Amendment Regulation.
The Amendment Regulation entered into force on the date of its publication.
You can access the full text of the Amendment Regulation via this link. (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.
