Turkey Consolidates Outsourcing Rules For Insurance Companies

On August 28, 2015, the Undersecretariat of the Treasury issued its Regulation on Insurance Support Services, comprehensively setting out the rules for insurance companies to outsource ancillary functions. While the Treasury had previously issued several sector announcements with guidelines for insurers' outsourcing activities, this is the first time that the Treasury has compiled the guidelines in a single regulation. The regulation will come into force on November 28, 2015. Under the regulation:

• Insurance and private pension companies may outsource ancillary services that are not central to their insurance business. These services include: (i) technical examinations and controls for underwriting and compensation management, (ii) mitigation of risks and losses, (iii) ancillary services for damage management, (iv) repair, maintenance and spare parts services, (v) assistance services, (vi) health consultancy for compensation management, (vii) medical treatment