In a move to tackle an economic fallout due to coronavirus, Turkey takes important measures in the insurance sector. The Treasury and Finance Ministry has started to provide reinsurance coverage to mitigate risk faced by small and middle-sized companies.
Essentially, this reinsurance is for the State Supported Commercial Receivable Insurance System for SMEs according to the Insurance Association of Turkey. In order to support the system, new changes have been implemented earlier this month.
There has been an increase in the annual sales revenue, up to TRY 125m after the coverage of medium-sized enterprises, providing protection from uncovered losses.
Regarding the reinsurance coverage, Mr. Atilla Benli, the president of Insurance Association of Turkey mentions in a statement- risks from insurance contracts will be covered in the period from April 1, 2020 April 1, 2021, without transferring the risks through any other reinsurance or retro cession deals. In addition, he says that all the credit insurance claims will be done online through the system’s website, with an insurance limit of TRY 750,000 for each buyer.