TURKEY: REINSURANCE POOL TO BE FORMED UNDER THE NEW ECONOMIC PLAN; EMPLOYEES’ PARTICIPATION IN THE PRIVATE PENSIONS SYSTEM MANDATORY FOR THREE YEARS.

Turkey’s insurance market will see soon a new reinsurance pool being formed, according to the provisions of the New Economic Plan (YEP) aiming to ease access of the so called “risky enterprises” to insurance programs.

The New Economic Plan (YEP) was presented by Treasury and Finance Minister Berat Albayrak on September 20. On this occasion the Minister reiterated the statement made in August concerning the establishment of a reinsurance model, specifying that the chosen form is that of a pool. The main reason for this decision is that of offering to the companies operating in certain industrial sectors – such as ginnery operators in the textile industry or dye and chemical plants – the chance to access an affordable insurance plan. Previously, representatives of these companies have voices their concern with regard the difficulties encountered in insuring their business, as considered “risky” by insurers and thus either not accepted in insurers or charged with very high premiums.

The new reinsurance pool, which will be managed by the Natural Disasters Insurance Authority (DASK), should fill this gap, providing for easy and affordable access to insurance for the “risky” companies.

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