Alper Tan
1
Content
Insurance Association of Turkey
Turkish Insurance Industry
Ongoing Projects of Association
2
Insurance
Association of
Turkey
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Insurance Association of Turkey
•
The Association of the Insurance, Reinsurance and Pension Companies of
Turkey is a specialist institution with the characteristics of a unique nongovernmental institution operating under Insurance Law No. 5684.
Committees of the Association
The Association established the following committees to facilitate the
preparation and revision of all legislation, tariffs, working guides and general
clauses relating to insurance; to foster the insurance sector and to conduct
studies and research on sectoral problems:
•Fire Insurance
•Marine Insurance
•Casualty Insurance
•Non-life Claims
•Engineering Insurance
•Life Insurance
•Risk Engineering
Health Insurance
Liability Insurance
Agriculture Insurance
Financial & Accounting
Law & Legal Protection
AML/CFT
Actuary
International Memberships
• Insurance Europe, European Insurance and Reinsurance Federation www.cea.eu
• IAIS, International Association of Insurance Supervisors
www.iaisweb.org
• IMIA, International Association of Engineering Insurers
www.imia.com
• IUMI, International Union of Marine Insurance
www.iumi.com
• ICC, International Chamber of Commerce
www.iccwbo.org
• FALIA, The Foundation for the Advancement of Life & Insurance www.falia.jp
Turkish
Insurance
Industry
7
Turkish Insurance Industry
37
8
Non-life
Life
1
18
Reinsurance
Life & Pension
64 active companies
8
Turkish Economy 2013
GDP
GDP per capita
Inflation
Inflation
Unemployment
818 Billion $
10,675 $
CPI 7.40%
PPI 6.97%
10.02%
( * ) GDP and unemployment are estimated
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World Insurance Industry vs Turkey
World average - Premiums in percent of GDP is 6.5%
Developed
Countries
Developing
Countries
8.6%
2.7%
USA
UK
Turkey
6.8%
11.2%
1.4%
World average - Premiums per capita is 656 USD
Developed
Countries
Developing
Countries
3,677 $
120 $
USA
UK
Turkey
4,047 $
4,350 $
146 $
SOURCE: Swiss Re, Sigma No: 3/2013.
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Number of employees working in Turkish insurance industry
2009
2010
2011
2012
2013
16,300
16,568
17,314
17,704
18,137
11
MILLION USD
Premium Production (2009-2013) ($)
12,000
10,000
8,000
6,000
4,000
2,000
0
Non Life
Life
Total
2009
6,770
1,168
7,938
2010
7,935
1,448
9,383
2011
8,616
1,598
10,214
2012
9,508
1,505
11,013
2013
9,762
1,590
11,352
Premium production
in Turkey:
More than 11 billion USD
Real growth rate
13.5%
(in USD)
Total Premium Production Per Capita ($)
136
150
100
40
50
4
13
0
14
146
148
Profitability of Turkish Insurance Industry
(Non-Life)
(000 TL)
1,000,000
834,511
500,000
0
130,867
2009
-500,000
-660,354
2,940
2010
58,587
2011
-714,972
2012
-589,006
-652,627
-1,000,000
-1,500,000
-1,346,519
Total Technical Profit
Profit of MOD+MTPL
15
2013
47,596
Ongoing projects of
Association
16
Projects
Association has focused on profitability of motor insurance. We have
taken consulting services from two international firms.
Projects;
Direct settlement system
Certification of body shops and spare parts used during repair
Loss of support
Fraud
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Direct Settlement System
With the implementation of direct settlement system no faulty
insured will approach to his own insurance company (MTPL)…
No faulty insured
1
7
6
4
5
No faulty client’s
Insurance comnpany
3
Exchange
Faulty client’s
Insurance
comnpany
Body shop
2
18
Direct Settlement System
Benefits of the system.
Direct Settlement System
Insured
Improved customer
satisfaction
Insurance Company
Insurance sector
Decrease in IBNR
Improved reputation
Less conflict
Faster claims handling
Decrease in subrogation costs
Repair shop networks
Cost control
New products
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Certification of spare parts
Certifation of eqivalent spare parts will increase trust of the client.
Decrease in claims costs.
20
Loss of support
Consistent approach in assumptions and methodology needed
Will solve reserving and claims experience problems
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Fraud
SISBIS records should be updated
Detection of fraud with analytical methods
Focus on organised crime
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for your
attention!
Thank youThank
for you
your
attention