SEDDK left the management of the portfolio of 2 insurance companies to the Assurance Account

It was reported that the current board members of Gri Sigorta AŞ and Limited Liability Mellce Mutual Insurance Cooperative companies were all dismissed, new board members were appointed and the management of insurance portfolios was left to the Security Account. In the statement made by the Insurance and Private Pension Regulation and Supervision Agency (SEDDK), it was conveyed that the insurance and private pension sector is under the continuous supervision and control of the Agency and that the sector, which has international prestige and a strong capital structure, has reached historical peaks in capital adequacy level and equity profitability according to its recent financials. The statement reads, “However, it has become necessary to apply measures to Gri Sigorta Anonim Şirketi and Limited Liability Mutual Insurance Cooperative, which have been subject to gradual measures by our Institution for a while due to their transactions contrary to legislation and mismanagement and have not been able to improve their situation despite the reasonable period given, in order to protect the rights and interests of our insured and to prevent our sector from being negatively affected. In this context, in accordance with Article 20 of the Insurance Law No. 5684, it has been decided to terminate the duties of all current board members of the said companies and to appoint new board members and to leave the management of their insurance portfolios to the Assurance Account.” It was stated in the statement that the necessary initiatives have been initiated to create compensatory plans under the leadership of the Insurance Association of Turkey in order to continue the insurance of those affected by the process and to protect their rights. It was stated that, “As mentioned above, our measures in question are limited to the aforementioned companies that are at a scale that will not affect our sector and are aimed at ending persistent mismanagement and transactions contrary to legislation.”