Audit of Insurance Companies in Turkish Insurance Law
Insurance companies are subject to inspection by Insurance Supervisory Institutions. The inspection of the insurance companies are being made by experts, actuals and assistants.
Auditing of insurance companies can be carried out by requesting information, checking bookkeeping entries, checking documents and auditing financial power of the companies. Branches of insurance companies and related banks are also subject to audit.
Auditing is possible in three stages. These stages are divided into three, which are establishment stage, operation stage and termination stage.
In the audit at the establishment stage, it is checked whether the company meets the mandatory requirements for establishment. Accordingly, it is investigated whether the necessary permits and licenses have been obtained and whether the company is registered and announced. In addition, whether or not the amount of coverage is paid that insurance companies must deposit during the establishment phase is also subject to auditing at the establishment stage. Whether or not the company has the necessary financial strength is another matter that is investigated.
The license will be canceled If the company fails to meet the necessary conditions for obtaining the license. If such license is revoked, the company will have to transfer its portfolios before six months will pass. Otherwise, the undersecretariat will be able to take all kinds of measures in this regard.
It is checked whether the company continues its activities with a strong financial structure within the scope of the audit during the activity phase. If the financial structure of the company has decreased, it is audited whether it has taken the measures recommended by the ministry
In the phase of termination, there is an audit conducted to protect the company’s portfolio. The termination of the company is in question in cases of liquidation, portfolio transfer or bankruptcy of the company.