Name
Global FinTech Guide
Country _ Name
Turkey
SectionTitle
InsurTech
Body
InsurTech is composed of the words “insurance” and “technology”. It is used as a collective term for the application of modern technologies in the domain of insurance services.

Digital and mobile brokers: FinTechs belonging to this category mostly act as digital insurance brokers and provide users with an overview of their insurance contracts with their respective conditions. Some FinTechs offer very short-term insurance contracts to cover specific cases which can be concluded often spontaneously via mobile devices. Oftentimes additional consulting services are offered.

Internet of things: FinTechs belonging to this category collect data by measuring for example the driving style of the customers or through wearables the customers wear to consult on, offer and/or manage the customer’s insurances.

Introduction

Attitude of the country towards InsurTech-services

InsurTech-services are not regulated under Turkish law. They would be subject to general insurance broker regulations.

Legal affairs

Obligations and requirements to provide InsurTech-services

Insurance brokers are defined under the Insurance Law no. 5684 as “persons, representing those who want to have insurance or reinsurance contracts, acting completely impartially and independently in the selection of the companies to which these contracts will be made, and taking into account the rights and interests of the persons who want to receive assurance, carrying out the preparatory work before the conclusion of the contracts and assisting in the implementation of the contracts or in the collection of compensation when necessary”. 

The following qualifications are sought for the corporate bodies wishing to conduct brokerage activities:

    a. Their headquarter should be in Turkey;

    b. They should be established in the form of joint stock company or limited liability company;

    c. They should have fulfilled the minimum paid-in capital requirement;

    d. They should have the physical location, technical and administrative infrastructure and human resources and sufficient equipment required for the conduction of brokerage activities;

    e. They should have a general manager and sufficient number of deputy general managers who are responsible for the issues related to the insurance business and insurance technique with regard to the branches where an activity is conducted.

The minimum paid-in capital for the brokers legal entity nature shall be TRY 250.000 (approx. EUR 14,000), based on the type of the company, on the condition not to be less than the amount to be designated by the Ministry of Commerce, and an additional TRY 50.000 (approx. EUR 28,000) for each and every license to commence operation. All share certificates must be of registered type.

The shareholders’ equity of the brokers in operation cannot be less than 10% of their annual operating revenues and the sum total of:

  • the due debts to the companies for which a delay of 1 to 30 days has occurred after the maturity date are multiplied by the coefficient of (0,25);
  • the due debts to the companies for which a delay of 31 to 60 days has occurred after the maturity date are multiplied by the coefficient of (0,5);
  • the due debts to the companies for which a delay of 61 days to one (1) year has occurred after the maturity date are multiplied by the coefficient of (0,8);
  • the due debts to the companies for which a delay of more than one (1) year has occurred after the maturity date are multiplied by the coefficient of (1).

This calculation is made as of the end of the year. If an additional capital is required, th

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