New Insurance Law And Regulations Bring Progress Through Transparency

Liberalization of the regulations governing the insurance sector commenced in the 1980s, in parallel with legal reform of other financial sectors. Primarily the banking and securities industries were affected as the possibility of Turkey's accession to the European Union gained credibility. This liberalization trend ultimately spread throughout the broader financial markets, and gathered momentum in the early 2000s.

As a part of Turkey's integration obligations to the EU, and to fulfill one of its commitments undertaken vis-à-vis the International Monetary Fund (the "IMF"), Turkey passed Insurance Law No. 5684 on 14 June 2007 (the "Law"). Both the IMF and the EU had been highlighting the importance of a financial system where banks and non-banking institutions have a solid financial status and are effectively supervised by regulatory authorities. Turkey's annual Progress Report, prepared by the