Turkey’s 2007 Progress Report prepared by the European Commission was published on 6 November 2007. The report analyzes the developments in the Turkish insurance sector, the difficulties faced in the harmonization process and the priorities of the sector under different chapters. While in previous Progress Reports, the Turkish insurance sector was criticized for having limited alignment, the 2007 Progress Report indicated for the first time that “good progress” had been achieved in the area of insurance and occupational pensions.

In 2007, before the publication of the Progress Report, the Association held meetings both in Brussels and Ankara at the European Commission DG Internal Market, Delegation of the European Commission to Turkey and the Secretariat General for EU Affairs. During these meetings, thorough presentations were made on the developments in the sector and copies of the new Turkish Insurance Law, which had been translated into English and published both in Turkish and English by the Association, were distributed to the officials of these institutions. The Association, therefore, welcomed the positive assessments on insurance in the Progress Report.

In the 2007 Progress Report, general assessments on insurance are made under the “Economic Criteria” title. Other assessments are made under different chapters. Under Chapter 4 (Free Movement of Capital), the adoption of a new implementing regulation for the collateral requirements in the insurance sector and under Chapter 14 (Transport Policy), the adoption of an implementing legislation on liability insurance for air carriers were underlined. Under Chapter 17 (Economic and Monetary Policy), the progress regarding the prohibition of privileged access by the public sector to financial institutions, through the adoption of the new Insurance Law, is mentioned. Assessments on block exemptions in insurance are made under Chapter 8 (Competition Policy); while a thorough analysis is made under Chapter 9 (Financial Services).

Under Chapter 9 (Financial Services), the 2007 Progress 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 liberalizes 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.”