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Legal Alerts

19/06/2020

IRSA Ushers In New Era for the Insurance Sector

Legal Alerts
Banking & Finance
Financial Institutions

Recent Developments

The Presidential Decree No. 47 on the Organization and Duties of the Insurance and Private Pension Regulatory and Supervisory Authority (“Decree”) established the Insurance and Private Pension Regulatory and Supervisory Authority (”IRSA”) as a public entity with financial and administrative autonomy. (Turkish Insurance Sector to be Supervised by Autonomous Regulator)

The Decree provided that the first meeting of the Insurance and Private Pension Regulatory and Supervisory Board (”Board”) will be held within 15 days following the appointment of the IRSA president and IRSA members. The IRSA will be considered established as of the first Board meeting.

The IRSA president and members were appointed via the Presidency’s appointment resolution no. 2020/245. Following the appointment, the first Board meeting was held on June 5, 2020. Accordingly, the IRSA was considered established as of June 5, 2020.

Considering the potential disruptions that may occur during the transition period, in its letter dated June 10, 2020 to the Turkish Association of Insurance, Reinsurance and Private Pension Companies, the IRSA highlighted that all correspondence with the abolished Insurance General Directorate or the Presidency of the Insurance Supervisory Board will now be directed to the IRSA.

Conclusion

With the IRSA becoming functional upon the first meeting of the Board, the Turkish insurance sector is now subject to regulation and supervision by an independent authority, which has been a popular topic for many years.