ISTANBUL — Türkiye’s insurance regulator has temporarily suspended the authority of Insurance and Private Pension Regulation and Supervision Agency (SEDDK) to allow Magdeburger Sigorta to issue new insurance policies and renew existing ones, citing financial weakness.
In an official statement, the regulator announced that the company’s policy issuance and renewal rights across all branches have been halted until it meets capital adequacy requirements.
The decision follows a period of close monitoring and gradual corrective measures imposed on the company. Despite these steps, Magdeburger Sigorta failed to resolve its financial deficiencies, prompting authorities to take stricter action.
Existing Policies Remain Valid
The regulator emphasized that the move is designed to protect policyholders and maintain stability in the insurance sector. Existing insurance contracts will remain valid, and the company is required to continue fulfilling all obligations, including compensation payments.
Authorities also stated that necessary precautions have been taken to ensure that customers’ rights and claims are safeguarded during this period.
Background
Magdeburger Sigorta, originally founded in Germany in 1844 and operating in Türkiye since 2018, had been under regulatory scrutiny due to its weakening financial structure
Source: Patronlar Dünyası/ Prepared by: İlayda Gök