Reinsurance support for the State-Backed Accounts Receivable Insurance System

Reinsurance support of 75-110 percent will be provided to the State Supported Accounts Receivable Insurance System, which was established to effectively protect risks covered by trade accounts receivable insurance.

In accordance with the President’s decision on the matter published in the Official Gazette today, the loss/premium ratio of the risks derived from insurance contracts entered into in the corresponding period, but that cannot be transferred through reinsurance and retrocession; The reinsurance support of 75 percent or more will be granted by the State for the remaining participation in the Special Risk Management Center, which constitutes 50 percent of the risks for which guarantee is given, and 110 percent or more for the participation that constitutes the remaining 50. percent of collateralized risks.

1.5 PERCENT OF GROSS PREMIUM

The Special Risk Management Center will be authorized to enter into a reinsurance contract to reduce the reinsurance support promised by the state.

The appropriate price for reinsurance support is five per thousand of the gross premium issued after deducting the cancellations of each product in the corresponding period (from the beginning of April to the end of March of the requesting year), in case the damage /premium ratio for which state support is required, for each product in the corresponding period 1.5 percent of the gross premium issued after deducting cancellations.

According to the transitory article added to the decision, the provisions of the decision on reinsurance support to be committed by the state to the state-supported trade receivables insurance system, which was put into effect by the decision of the President No. (Reuters)