The Turkish government is planning to establish a reinsurance company funded by state coffers.
Minister of Finance and Treasury Mr Berat Albayrak announced this last month when he said that the government has set several goals to strengthen the financial system, reported Insurance Gazette.
He explained that the insurance sector in Turkey has problems supplying reinsurance cover, especially for activities abroad.
Meanwhile, a State Assisted Receivable Insurance Scheme has been implemented since 1 January, to help small and medium sized enterprises.
The relevant communiques, which regulate the working procedures, principles and tariffs of the scheme, were published in the Official Gazette on 24 December 2018.
Only trade receivables from domestic sales will be covered. In other words, exporters will not be able to benefit from the insurance.
Companies that have signed a protocol with the Unusual Risks Management Centre will be able to operate within this system. The risk assessment of SMEs will also be carried out by the Centre. The SMEs will be rated between “1” (lowest risk) and “6” (highest risk). The Centre will make pay out claims and provide regular reports on losses to the Ministry of Finance and Treasury and on the development of the system.