The new regulation details the rules on the insurances that can be provided linked to goods and services offered by businesses whose primary business activity is not insurance brokerage which is becoming to stand out in practice.

As per the new regulation, business processes carried out under the abolished regulation will be required to be compliant with the new Regulation by 1 September 2021.

Accordingly, with the new regulation, insurance intermediaries, banks and institutions incorporated under special laws and authorized to act as insurance agents, and individuals and entities providing a commercial environment for insurances linked to goods and services have been explicitly included to the scope of the regulation.

In addition, insurance companies and pension companies providing insurance coverage have been prohibited to transfer their obligations to bear risk and pay indemnification upon occurrence of risk which constitute the primary obligation of the insurance contract, except for reinsurance contracts.

Novelties With Respect to Distance Insurance Contracts
Products and activities of insurance companies and pension companies that provide insurance coverage cannot be sold through electronic commercial environments that are used for marketing and sale of goods and services, excluding the electronic commerce environments of insurance companies and pension companies providing insurance coverage, insurance intermediaries and banks and institutions established by special laws and authorized to act as insurance agent. The latter prohibition is not applicable to the insurance products that are linked to the sale of goods and services. However, such authorized institutions are allowed to place advertisements and publications in such environments.

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