High-Risk Insurance Pool for MTPL in Turkey

On 11 July 2017, the following amendments to the Turkish insurance legislation were published in the Official Gazette upon adoption by the Undersecretariat of the Treasury (the “Treasury”):

• Regulation amending the Regulation on the Implementation Principles of the Motor Third Party Liability Insurance (“MTPL”) Tariffs (“MTPL Amendment Regulation“); and
   
• Regulation amending the Regulation on the Capital Adequacy Calculation and Assessment of the Insurance, Reinsurance and Private Pension Companies (“Capital Adequacy Amendment Regulation”).

Pursuant to this legislation, a long-discussed High-Risk Insurance Pool has been established for MTPL, as mentioned in our Client Alert regarding recent changes on MTPL, which was published in August 2016.

Accordingly, the relevant changes have also been reflected in the Capital Adequacy Amendment Regulation, together with a few changes on equity capital adequacy provisions.

Click on the PDF below to read about the notable changes brought by these amendments and download the full Client Alert.