New Amendments to the Regulation on Insurance and Reinsurance Brokers

New amendments made to the Regulation on Insurance and Reinsurance Brokers are published on 18.01.2024. The amendments introduced the Insurance and Private Pension Supervisory and Audit Authority and Board into the lexicology of the regulation. Other amendments may be summarized as follows:

New Requirements for real person shareholders, employees and real person shareholders of legal entity shareholders

Pursuant to the new amendments, the real person shareholders of legal entity brokers and the real person shareholders of insurance or reinsurance brokers’ shareholders should not have been sentenced to more than 5 years of imprisonment for any action or to imprisonment or more than one judicial fine for violation of insurance legislation; crimes against the security of the state, the Constitutional order and the functioning of this order, national defense and state secrets, as well as espionage, embezzlement, extortion, bribery, theft, fraud, forgery, abuse of trust, fraudulent bankruptcy, bid rigging, tampering with the performance of an act, tampering with the information system. They should also not have been convicted of obstruction, disruption, destruction or alteration of data, misuse of bank or credit cards, laundering of criminal assets, financing of terrorism, smuggling, tax evasion or wrongful acquisition of property, even if they have been subsequently pardoned.

Even employed under any other title, managers who serve in positions equal to or higher than the deputy general manager in terms of their powers and duties are also subject to the provisions regarding general managers and assistant general managers.

Increase of Minimum Required Capital Amount

The minimum paid-in capital amount for the legal entity brokers is increased to TL 2,500,000 plus an additional TL 500,000 for each license requested in the life and non-life insurance activity fields, and a further  TL 1,000,000 for the license requested in the reinsurance activity field. These amounts will be revised each year in January based on the increase in the manufacturer price index.