Insurance companies operating in Turkey, reinsurance companies, the association of the insurance and reinsurance companies of turkey, brokers, insurance experts and actuaries are subject to the provisions of the Insurance Act 5684.
The insurance arbitration system for the settlement of disputes arising from the insurance contracts, the principles and procedures regarding the start of operation, organization, management, working principles and procedures, the termination of activities and inspection, are regulated in the act.
Insurance companies and reinsurance companies that will operate in Turkey must be established as joint stock companies or cooperatives. Insurance companies and reinsurance companies cannot be engaged in any business other than insurance transactions and jobs directly linked to them.
Board of directors of insurance companies and reinsurance companies cannot be less than five people, including the general manager, and auditors cannot be less than two. The general manager is a natural member of the board of directors.
Insurance companies and reinsurance companies; They are obliged to establish an effective internal audit system, including risk management systems, in order to continuously control and monitor the compliance of all business and transactions with insurance legislation and other relevant legislation, internal directives of the company and management strategy and policies, and to detect and prevent errors, frauds and irregularities. Internal audit can also be done by outsourcing.