Decision on Excess Loss Support to be Committed by the State to the Agricultural Insurance Pool (Decision No: 11109)

Presidential Decision No. 11109 establishes the framework under which the Turkish state will provide excess loss (stop-loss) reinsurance support to the Agricultural Insurance Pool (TARSİM). TARSİM is the state-backed pool through which Turkish farmers can insure their crops, livestock, and agricultural assets against natural disasters and adverse weather events. This decision defines the conditions, thresholds, and extent to which the Treasury will absorb losses that exceed TARSİM's own risk-bearing capacity. The mechanism functions as a government reinsurance backstop: when cumulative insured losses in a given period surpass a defined trigger point, the state steps in to cover the excess, shielding the pool from catastrophic shortfalls. This structure is intended to maintain the financial stability of TARSİM and ensure continuity of coverage for farmers even in years marked by widespread agricultural disasters. By formalizing this state guarantee, the decision strengthens confidence in the agricultural insurance system, potentially encouraging higher participation rates among farmers and insurance companies operating within the pool. It also clarifies the fiscal exposure of the state budget to agricultural risk events, enabling better sovereign risk planning and budget allocation for disaster-related agricultural losses.

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