On Aug. 29, TUR SEDDK stated stress test to be prepared by insurers.
TUR SEDDK issued Circular 2024/22 on the earthquake stress tests to be prepared by insurance companies to determine the procedures and principles for such stress tests.
Circular Overview
Text relates to stress tests to be prepared by insurance companies operating in Turkey, to measure financial resilience in the face of possible earthquakes, especially Marmara.
The content of the circular covers insurance companies operating in non-life branches.
The Circular has been prepared on basis of the second paragraph of Article 54 titled Reports to be made to the Authority of Regulation on Internal Systems in Insurance and Private Pension Sectors, 31670, published in the Official Gazette, Nov. 25, 2021.
The Circular sets out the scenarios for Possible Marmara Earthquake Scenario Stress Test, as well as for the Stress Test for Risk Cumulatives Outside the Marmara Region.
The results of earthquake stress test are prepared in accordance with additional criteria in annex of the Circular and determined report format, until the end of Apr. every year.
The stress test results for 2024 are to be calculated by relevant insurers over the risk cumulations of Jun. 30, 2024, and are to be sent to the Authority by Nov. 30, 2024.
According to the results of individual stress tests, the Board of each affected insurer must take necessary measures to ensure they have additional reinsurance protection.
Effectiveness
The terms of the circular enter into force on the date of its publication, Aug. 29, 2024.
