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 Regulation include:

  • Support Services 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 ("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 related legislation.
    • 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.
  • Minimum contract requirements: Article 8 outlines minimum content for agreements executed between corporations and support service providers.
  • Supervision: Support service providers are subject to Treasury supervision.

Please see this link for the full text of the Regulation (only available in Turkish).

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