TAIEX Seminar on “European Legislation on Reinsurance and Insurance Groups” prepared by Association in cooperation with TAIEX was held on 8 February 2008 in Istanbul
One-day seminar on “European Legislation on Reinsurance and Insurance Groups” prepared by Association in cooperation with TAIEX (Technical Assistance and Information Exchange Unit of DG Enlargement) was held on 8 February 2008 at Best Western Eresin Taxim Hotel in Istanbul.
During the one-day seminar, the European specialists have discussed and shared their opinions about Directive 2005/68/EC on reinsurance and Directive 1998/78/EC on supplementary supervision of insurance undertakings in an insurance group.
The participants from insurance and reinsurance companies, public authorities and universities attended the seminar.
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A Circular has been published on State Supported Agriculture Insurance
A Circular has been published on State Supported Agriculture Insurance. In accordance with the Circular, insurance companies shall not conclude insurance contracts for risks, regions and products outside the scope of the pool system established by Law.
A Circular on Actuarial Chain Ladder has been published by the Treasury
A Circular has been published by the Treasury on Actuarial Chain Ladder. The regulation on technical reserves of insurance and reinsurance and pension companies rules out that the amount allocated by insurance companies to outstanding claims reserve within the current account term can not be lower than the amount determined by the actuarial chain ladder method. The Circular on Actuarial Chain Ladder provides a framework for the implementation of the actuarial chain method.
The procedure on the long term group life insurance tariff for individual credit users has been abolished
A Circular on the abolishment of the procedure on the long term group life insurance tariff for individual credit users has been published by the Treasury. All the applications regarding life insurance will be processed in accordance with the regulation on life insurance and other related circulars.
An announcement has been published regarding the technical procedures of life insurance tariff and share of profit
An announcement has been published by the Treasury regarding the technical procedures of life insurance tariff and share of profit.
Within the context of the technical procedures of life insurance tariff and share of profit under life insurance regulation some new measures will be applied such as the following:
- The share of expenses, mediation and management costs applied in tariff and share of profit shall be calculated on the basis of various ratios without exceeding maximum ratio.
- Group life insurance conracts will be harmonized with the new clauses of new regulation directly without any adminisrative process.
- The mortality tables as well as technical interest, share of expense and mediation costs will be organized in terms of multi or optional frequency rates.
September 2007 Statistics of the Turkish Insurance Sector have been published on the Association’s website
September 2007 Statistics of the Turkish Insurance Sector, gathered by the data sent by member companies have been published on the Association’s website. The total premium production reached 8 Billion YTL. with a growth of 13,77 %.
The Association supports health insurance programme to be broadcasted on TGRT News TV
At the board meeting of the Association held on 25 October 2007, the board members reached a decision to support a TV programme called “A Common Mind in Health” which will be a live broadcast on TGRT News TV between 22:00 – 22:30 starting on 26 November 2007.
The programme will be prepared and presented by Dr. Haluk Özsarı, Health Care Consultant of the Association. The programme will cover issues like public and private insurance in the world and in Turkey, the common health insurance in Turkey as well as the future and current situation of healthcare services. The programme will host guests with different backgrounds, such as decision-makers, academicians and representatives of NGOs.
The programme aims at raising awareness about the Association and the importance of insurance and healthcare services in Turkey.
The Association paid a study visit to the Dutch Association of Insurers (VVN) on 19 November 2007
The Association attaches utmost importance to establishing a steady and functioning dialogue platform with other national associations in the Single European Insurance Market. Within this context, the Association paid a study visit to the Dutch Association of Insurers (VVN) on 19 November 2007. During the meeting, the Association was represented by Mr. Erhan Tunçay, Secretary General and Ms. Berna Ozsar Kumcu, EU Specialist.
Prior to the meeting, a working lunch was held where Mr. Jan van Rijckevorsel, the Director of the Centre for Insurance Statistics gave a briefing on the role of insurance in the provision of pension revenue in the EU.
Following the briefing, a meeting was held with Mr. Richard Weurding, Director General of VVN, Mr. Willem Terwisscha van Scheltinga, Secretary to the VVN Board and Ms. Colette Kraaijenhagen, Public Affairs Manager. During the meeting, the Turkish Association, its structure and functioning mechanism were introduced by a thorough powerpoint presentation, ideas and experiences were exchanged on various issues. VVN also made a comprehensive presentation about its structure, activities and the Dutch insurance market.
At the end of the meeting, both Associations expressed their will to further enhance the mutual dialogue platform initiated by this meeting.
The Association held a meeting on the implications of General Health Insurance on the insurance sector
On 13 November 2007, Mr. Birol Aydemir, Head of the Social Security Institution, has been invited to the Association and a meeting was held with the executives of the Association. A presentation was made on the working of the General Health Insurance system and the modifications to be made in the General Health Insurance Act.
The Association’s application for a TAIEX project has been approved
The Association’s project proposal submitted to the Technical Assistance Information Exchange Unit (TAIEX) of the European Commission DG Enlargement for the alignment of the Turkish insurance sector with the EU insurance acquis has been approved by TAIEX on 6 November 2007. In its proposal, the Association had requested a workshop on insurance groups and reinsurance, two important issues mentioned by the European Commission in Turkey’s 2006 Progress Report as lagging behind in the harmonization process.
The workshop is expected to take place on 8 February 2008 in Istanbul, Turkey.
Turkey 2007 Progress Report has been published
The Progress Report for Turkey prepared by the European Commission has been published on 6 November 2007. The report analyzed the Turkish insurance sector under Chapter 9: Financial Services. While in previous Regular Reports, the Turkish insurance sector was criticized for having limited alignment, the 2007 Regular Report indicated for the first time that “good progress” has been achieved in the area of insurance and occupational pensions.
The 2007 Regular Report makes the following assessments for the Turkish insurance sector:
“Good progress has been made in insurance and occupational pensions. A new Insurance Code - Law No. 5684 on Insurance - was adopted and published in the Official Gazette. It regulates the taking up and pursuit of the insurance and reinsurance business and established rules for insurance mediation. Secondary legislation governing technical reserves, collaterals, general conditions for annuities and contractual information for policy holders has also been adopted. The introduction of out-of-court settlement body for customer protection is a welcome development. However, the new insurance law is only partly in line with the acquis, since certain basic principles of the EU insurance law are not respected. The freedom to set tariffs is restricted in the compulsory insurance sector and policy conditions are subject to approval by the Treasury.
Turkey introduced "miscellaneous financial expenses" and "assistance" as two additional insurance classes. Turkey adopted new secondary legislation setting the rules for the calculation of technical provisions and the asset types that can be held as technical reserves, as well as secondary regulation concerning financial reporting requirements of insurance, reinsurance and occupational pension companies. As far as specific non-life insurance acquis is concerned, no progress can be reported as regards co-insurance, credit insurance, legal expenses insurance and tourist assistance.
Turkey transposed the acquis which sets the minimum insurance requirements for air carriers and aircraft operators in respect of passengers, baggage, cargo, third parties and mail. Turkey introduced new legislation as regards the compulsory motor insurance which to a limited extent liberalises the motor insurance tariffs. In addition, Turkey adopted legislation which extended the scope of the insurance guarantee scheme, including all types of compulsory insurances. Turkey adopted secondary legislation concerning minimum qualifications of occupational pension companies' staff and actuaries.
No progress can be reported on the enforcement capacity and the independence of the General Directorate of Insurance and the Insurance Supervisory Board which regulate and supervise the insurance sector. Alignment with the acquis is partial in the area of insurance and supplementary pensions.”