TURKEY Law and Practice Contributed by: Sera Somay, Merve Kurdak and Doğa Pınarlı Dedebaş, Paksoy
8. Insurtech 8.1 Underwriting Processes Insurtech
operated in compliance with these existing regulatory distinctions.
9. Regtech 9.1 Regulation of Regtech Providers
In the insurtech context, underwriting processes may involve digital onboarding, automated risk assess - ment, AI-based analytics and alternative data sources. Although insurtech is not specifically regulated under Turkish legislation, insurers remain responsible for underwriting outcomes and must ensure compliance with applicable regulations. Since insurtech services may be qualified as support services, respective insurers are required to ensure that such services comply with the relevant regulatory framework. Regulatory Framework of Underwriting In general, insurers retain discretion over the commer - cial design and execution of underwriting processes. However, the overall framework is significantly influ - enced by regulations. General requirements imposed on insurers include the following: • documenting and monitoring underwriting policies and procedures; • ensuring pricing adequacy and technical reserves; • applying actuarial and risk management principles; and • establishing, operating and maintaining adequate and effective internal systems to monitor and con - trol risks. Underwriting activities are supervised by Insurance and Private Pension Regulation and Supervision Authority, which has the authority to review and regu - late underwriting practices, pricing methodologies and internal control systems. 8.2 Treatment of Different Types of Insurance As insurtech is not explicitly regulated under the applicable legislation, there is no distinct regulatory treatment applicable solely to insurtech activities. However, under general underwriting practices, dif - ferent types of insurance are treated differently by both industry participants and regulators. Accord - ingly, insurtech services must also be structured and
Regtech is not currently regulated as a standalone category in Türkiye. Nevertheless, depending on the nature of the services provided, sector-specific regulatory frameworks – such as those applicable to banking or capital markets – may apply. For example, services obtained by banks or payment institutions from third parties that qualify as support services are regulated in detail under the applicable legislation. Since regtech services may be qualified as support services, respective financial institutions are required to ensure that such services comply with the relevant regulatory framework. Regtech solutions are generally used in Türkiye to support compliance with MASAK, BRSA and CBRT regulations by providing services such as AML, KYC and fraud detection systems. 9.2 Contractual Terms to Ensure Performance and Accuracy Banks Services provided by regtech technology providers fall within the scope of banks’ support services. The applicable legislation regarding support services regu - lates agreements executed with such service provid - ers. The key provisions that must be included in agree - ments may be outlined as follows: • scope of services; • BRSA supervision; • bank audit rights; • confidentiality and data protection; • information security; • termination, continuity and transition; • sub-outsourcing; • on-site inspection; and • termination related to BRSA and other regulatory decisions.
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