“Regulation on Internal Systems in Insurance and Private Pension Sectors” (“Regulation”) drafted by the Insurance and Private Pension Regulation and Supervision Agency (“Agency”) was published in the Official Gazette dated 25 November 2021 and numbered 31670. The Regulation regulates the procedures and principles regarding the internal control, risk management, actuarial and internal audit systems to be established by insurance, reinsurance and pension companies, specific institutions operating in the insurance and private pension sectors, and insurance and reinsurance brokers regarded as legal entities, and their operations. The Regulation covers insurance, reinsurance and pension companies established in Turkey, organizations of foreign insurance and reinsurance companies in Turkey, Assurance Account, Insurance Information and Monitoring Center, Pension Monitoring Center, Insurance Arbitration Commission, Turkish Motor Vehicles Bureau, Turkish Natural Catastrophe Insurance Pool, Special Risks Management Center and insurance and reinsurance brokers regarded as legal entities.
The operations described below have been added in addition to the internal control system, risk management system and internal audit system in the Regulation on Internal Systems of Insurance, Reinsurance and Pension Companies published in the Official Gazette dated 21.6.2008 and numbered 26913, which was repealed with Article 56 of the Regulation. The regulation entered into force on the date of its publication and the transitional provisions are regulated with the Provisional Article 1.
Pursuant to Article 6 and onwards, the qualifications of the Members of the Audit Committee which fulfil duties within the scope of internal systems have been determined and their duties related to each function have been specified. Specific institutions, insurance and reinsurance brokers regarded as legal entities are not required to establish an audit committee within the scope of the exception set out in Article 13.
The purpose of the actuarial unit to be established within the scope of the Fifth Section of the Regulation is to provide assurance to the Agency regarding the general pricing policy of the institution, the actuarial adequacy of reinsurance agreements, the financial situation of the institution, the reliability and adequacy of technical provisions, asset and liability risk management and investment risk for investments made under insurance policies. Within the scope of Article 4/4 of the Regulation, Turkish Natural Catastrophe Insurance Pool, Special Risks Management Center and Turkish Motor Vehicles Bureau are obliged to establish an actuarial unit and function in addition to the units and functions defined in the Regulation.
Within the scope of Article 54 of the Regulation, detailed regulations regarding the reports which need to be submitted to the Agency within the scope of the internal control function, risk management function, actuarial function, internal audit function and the report prepared by the board of directors have been stipulated. With the exception of information regarded as trade secrets and taking into account the matters within the scope of personal data protection, companies and specific organizations are obliged to announce to the public the reports disclosed within the scope of paragraph 2 of Article 55 of the Regulation, in a way that can be easily accessed by the users on their home page.
You can access the full Turkish text of the regulation from the link below.
https://www.resmigazete.gov.tr/eskiler/2021/11/20211125-3.htm
