Islamic Finance News reported, citing the Insurance and Private Pension Regulation and Supervision Agency of Türkiye (IPRSA), that a new regulation on participation insurance and private pensions is in its final stage and is expected “in the very near future”. The draft framework is intended to broaden the scope of participation insurance, increase product diversity, strengthen alignment with international standards and improve sector governance, while building on rather than abolishing the existing rules introduced in 2017 and updated in 2020. The reported draft includes detailed requirements for participation insurance funds, including rules on income and expenditure, periodic reporting, and explicit segregation of policyholder participation funds from shareholder funds with separate, consistent and traceable reporting. It also covers operating models (including Wakalah and hybrid Wakalah–Mudarabah structures), the use of Qard Hasan, surplus distribution, duties of the Shariah advisory committee, compliance mechanisms, customer disclosure requirements, and training and certification processes. The draft is described as giving particular attention to AAOIFI’s Islamic Insurance Standard No. 26 and Islamic Reinsurance Standard No. 41; the report also notes that, as of October 2025, eight Shariah-compliant insurers operated in Türkiye and generated TRY 53 billion (USD 1.24 billion) in premiums, representing 5.5% of total premiums. IPRSA’s drafting process is described as including a comparative review of legislation in 15 countries and standards from three international participation finance standard setters, alongside consultations with public institutions, insurers, audit firms, industry associations, NGOs and academia. Once effective, the regulation is expected to provide a six-month transition period for firms to align their operations.
Insurance and Private Pension Regulation and Supervision Agency of Türkiye 2025-12-10
Insurance and Private Pension Regulation and Supervision Agency of Türkiye moves to finalise new participation insurance and private pensions regulation
Türkiye's Insurance and Private Pension Regulation and Supervision Agency is finalizing a regulation on participation insurance and private pensions to broaden scope, enhance product diversity, and align with international standards. The draft includes detailed requirements for fund management, operating models, and compliance, focusing on AAOIFI standards. A six-month transition period is anticipated for firms to comply once enacted.