A New Era in the Northern Cyprus Insurance Sector: Electronic Payments Commence for Insurance Premium Collections

New legislation, drafted to establish transparency within the Northern Cyprus insurance market, permanently prevent unfair competition, and legally safeguard policyholders' rights, has officially come into force following its publication in the Official Gazette dated 10 June 2026. Creating a radical shift in the sector, this regulation largely puts an end to the era of cash-premium collection by hand.

Under the new legal framework, it has been made mandatory for policy premium payments across all branches, excluding Compulsory Traffic Insurance (such as motor comprehensive, fire, health, and home insurance) to be transferred directly to the relevant insurance company itself, rather than through agents or intermediaries. Instead of cash, citizens will make their payments via traceable, registered electronic payment systems such as credit cards, debit cards, bank transfers, EFT, EÖS, and FAST.

The legislator's primary motivation for this move is to maximise policyholders' financial security and to establish an audit mechanism that leaves no doubt that premium payments have reached the company.

Thanks to this new era, the TRNC insurance sector will gain a transparent financial ecosystem free of the informal economy, meeting international standards and providing greater security for both citizens and companies.