Minimum capital amounts changed: New decision from insurance and pension companies

According to the statement made by the SEDDK, the minimum capital amount for the pension branch has been set at 1 billion lira.

The minimum establishment capital for insurance companies, insurance cooperatives (excluding closed mutuals), and reinsurance companies that have completed their establishment procedures and applied for a license, consisting of the base capital and the amounts determined for the branches for which a license is requested, cannot be less than 500 million lira.

The total capital requirement for a company to be established in the non-life group to operate in all branches is 3 billion 325 million lira, the total capital requirement to operate in all branches in life insurance is 1 billion 125 million lira, and the total capital accumulation required to provide reinsurance services is 2 billion 125 million lira.

For all companies, in addition to the aforementioned paid-in capital being paid in cash before the license application, the determined minimum capital amounts will be updated every January and July at the rate of increase in the Producer Price Index (PPI) announced by the Turkish Statistical Institute.

News Source: AA