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Insurance and Private Pension

 

The Turkish insurance sector has undergone serious changes in the last years and the complexity of the applications in the sector has increased in relation to both the financial reporting area and taxation. The developments in question are indicators of the growth potential of the sector, which also herald that the insurance sector will gain more importance in financial markets, while intra-market competition will heat up even more. The business environment which bears a great deal of opportunities and risks, necessitates professional consultancy services which are performed with a business partner approach and which include value creating solutions.

 

The quest for solutions caused by both the fact that the present social insurance system cannot provide adequate services for people, and the burden brought on the public budget due to the system has led to the adoption of the private pension fund system, which has been implemented in a wide range of developing countries, and the enactment of the Law on “Private Pension Savings, and Investment System”.

 

The Law on “Private Pension Savings, and Investment System” came into force on 7 October 2001. Following the enactment of the Law in the Grand Assembly, a new period started in the area of social insurance. In the scope of the Law: a model was envisaged in which individuals would contribute to pension accounts of pension firms on the basis of specified premiums; pension funds will invest these contributions towards investments in pension funds established and managed by a portfolio manager; and due to the liabilities of the pension firm toward both participants and the public authorities, the pension firm will be at the centre of the system.

 

How can Crowe Horwath Turkey help you?

 

Crowe Horwath Turkey provides independent external audit services to insurance companies, in accordance with the Insurance Supervisory Law No.7397, with its specialised team focusing on Insurance and Private Pension Funds; we also provide tax consultancy and full certification services to insurance companies in accordance with the insurance legislation. Furthermore we provide advisory services for companies at the establishment (start-up) phase, serves in the local and international public offerings, provides support for companies in the preparation of accounts in compliance with International Financial Reporting Standards and also American and European standards and organises special training programmes in line with the requirements of companies.