Türkiye: Regulator announces revised minimum capital requirements

Source: Middle East Insurance Review | Jan 2024

The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) has increased the minimum capital requirements to establish insurance and reinsurance companies.

Under the changes, for example, a reinsurer which operates both life and non-life branches is to meet a total minimum capital requirement of TRY700m ($24.2m), compared to TRY200m previously.

According to the circular issued by SEDDK on 27 November 2023, the changes took immediate effect. The previous time the minimum capital was revised was in February 2022.

The paid-up capital of insurance companies, insurance cooperatives (except closed mutuals) and reinsurance companies applying for a licence cannot be less than the base capital specified and the minimum capital amount determined for each insurance branch for which they request a licence.

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