Insurance & Reinsurance Brokers and Information
about Brokerage Profession
History of broker inTurkey
 The first regulation about Insurance and Reinsurance
Brokers was issued in 1995.
 Current regulation was brought into force in 2008.
Number of Brokers?
The number of Insurance and Reinsurance Brokers
operate in Turkey
 2006-56
 2007-60
 2008-65
 2009-72
 2010-78
 2011-present-81
 Annual growth rate: Approximately %10
Market share of Brokers?
The market share of Insurance and Reinsurance
Brokers operate in Turkey
 NON-LIFE
 2006- 9,2%
 2007- 9,7%
 2008- 10,5%
 2009- 11,3%
 2010- 10,8%
 2011-first 3 months- 12, 1%
Market share of Brokers?
The market share of Insurance and Reinsurance
Brokers operate in Turkey
 LIFE
 2006-0,9%
 2007- 0,9%
 2008-0,7%
 2009-0,9%
 2010-0,8%
 2011-first 3 months-0,7%
Type and Number of Licences?
 Licences of Insurance and Reinsurance Brokers operate in
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Turkey
To be in possession on only Non-Life Licence : 6
To be in possession on only Life Licence : 1
To be in possession on only Reinsurance Licence : 3
To be in possession on Life and Non-Life Licence : 8
To be in possession on Reinsurance and Non-Life Licence :
5
To be in possession on all Licences : 58
What is required to become a
Broker?
 FINANCIAL COMPETENCE
 TECHNICAL COMPETENCE
 EXPERIENCE COMPETENCE
What is required to become a
Broker?
 FINANCIAL COMPETENCE
- MİN. 100.000 TL PAID-IN CAPITAL
- ADDITIONAL 25.000 TL OF CAPITAL FOR EACH
LICENCE
- THE CAPITAL OF OPERATING BROKERS CAN NOT
BE LESS THAN %10 OF THEIR TOTAL ANNUAL
COMMISSION REVENUES
What is required to become a
Broker?
 EXPERIENCE COMPETENCE
- HIGH EXECUTIVE WHO HAS THE SIGNATURE
AUTHORITY MUST HAVE A MİN 10 YEARS OF
INSURANCE BACKGROUND.
- OTHER EXECUTIVES MUST HAVE MİN 5 YEARS OF
INSURANCE BACKGROUND.
What is required to become a
Broker?
 TECHNICAL COMPETENCE
- TECHNICAL REQUIREMENT IN WORK PLACE
- SOFTWARE REQUIREMENTS
- TO HAVE SUFFICIENT TECHNICAL PERSONNEL
- TO HAVE A PROFESSIONAL INDEMNITY
INSURANCE
What is required to become a
Broker?
 TECHNICAL COMPETENCE
- TECHNICAL PERSONNEL
- FOR HIGH-SCHOOL GRADUATE: 5 YEAR INSURANCE
EXPERIENCE
- FOR ACADEMY GRADUATES (2 YEARS EDU.): 3 YEAR
INSURANCE EXPERIENCE
- FOR ACADEMY GRADUATES OF INSURANCE AND
ACTUARY SCHOOLS (2 YEAR EDU.): 2 YEAR
INSURANCE EXPERIENCE
- FOR UNIVERSITY GRADUATES (4 YEAR EDU.): 1 YEAR
INSURANCE EXPERIENCE
What is required to become a
Broker?
 TECHNICAL COMPETENCE
- PROFESSIONAL INDEMNITY POLICY :
- LIMITS MUST BE :
EACH OCCURENCE MİN. 200.000 TL AND IN
AGGREGATE MİN. 1.000.000 TL
Brokers’ Obligations
 FINANCIAL OBLIGATIONS
- Brokers who have authority to make payment collection per
their agreemens with Insurance Companies, can only
recieve these premium payments via dedicated customer
accounts.
- They can not generate any income other than Commission
and consultancy&risk management fee from represented
customers.
- They can not pay any insurance claim or any advance
payment related to that claim.
Association of Insurance Brokers
 Although the Association’s name only contains “Insurance”
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word, it actually represents both Insurance and
Reinsurance Brokers.
It is the only entity in Turkey which represents Brokerage
Profession.
was established in 1991 when “Insurance” was not legally
defined as a profession in Turkey.
In 2005, it was accepted into BIPAR (Europe Insurance
Agent Federation) , and currently it is the only entity
representing Turkey in the Federation
Now , it has 78 members.
Association of Insurance Brokers
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With the regulation came into force in 2008, General
Directorate of Insurance gave the Association authority to;
Control and complete the new licence applications
Receive approval of new Technical Personnel
Prepare notice of Technical Personnel cancelations
Ensure data entry of year end financial information via
Insurance Brokers Information System
Notify any modications about current brokers and obtain
necessary permissions
Organize Technical Personnel Trainings
Prepare Technical Personnel ID Cards
To determine Technical Personnel competence criterias
Association of Insurance Brokers
Mission
To defend the common interests of the Insurance and
Reinsurance Brokers
Vision
To be a pioneer of this area, having distinguished
members producing high-quality services at the
highest level of professional and ethical codes of
practice leading to reference sources to be proud of the
members of the association, build our vision.
Association of Insurance Brokers
THANK YOU!!!!