Important changes in Regulation on Insurance Agencies

On 22 January 2025, Turkey’s Insurance and Private Pension Regulation and Supervision Agency (IPRSA) published the Regulation Amending the Regulation on Insurance Agencies (Regulation), which introduces important changes on insurance agencies. The novelties introduced by the Regulation are summarised below.

The minimum paid-in capital requirements for insurance agencies have been increased as follows:

• For all insurance agencies, except for those organised through branches or those engage in distance sales only, from TRY 50,000 to TRY 3,250,000.
• For the insurance agencies organised through branches, from TRY 300,000 to TRY 4,000,000 and from TRY 25,000 to TRY 325,000 for each branch office; and
• For insurance agencies engaging in distance sales only from, TRY 300,000 to TRY 4,000,000.

Furthermore, the minimum equity requirement for the agencies organised through branches or engaging in distance sales has been increased from TRY 300,000 to TRY 4,000,000.

The amounts related to the minimum paid-in capital and equity requirements shall be updated annually in January by the domestic producer price index rate announced by the Turkish Statistical Institute, unless otherwise determined by the IPRSA.

Increases in minimum paid-in capital and equity requirements shall not be applicable to the insurance agencies registered with the Insurance Agency Registry (Levha) or to those submitted their applications to the relevant chambers of commerce, prior to 22 January 2025.

Additionally, the amendments introduced the obligation for the insurance agencies to include their commercial titles on their websites and all other electronic platforms. It has also been clarified that the agencies shall not use any elements in their trade name, logo, or similar promotional materials, which may imply that they are an insurance company or that they engage in activities other than insurance agency services. The amendments also introduced certain regulations and clarifications with respect to the qualifications of technical personnel and human resources of agencies. Accordingly, the branch managers are required to possess the same qualifications as those required for general managers, deputy general managers and managers. Additionally, technical personnel are now required to attend in the mandatory renewal training every five years.

Finally, insurance agency candidates must now apply to the Union of Chambers and Commodity Exchanges of Türkiye for registration to the Insurance Agency Registry (Levha) within six months, following the receipt of the Certificate of Conformity (Uygunluk Belgesi) from the IPRSA.

The changes mentioned herein entered into force on 22 January 2025, the date of publication of the amendment.