Market Overview (GWP)
EL is written with the following sub-LoB’s in Turkey:
Construction, erection all risks, electronic equipment, machinery breakdown and
Leasing All Risks
No CECR and Decennial Liability exist yet in the market
ALoP is provided on a limited basis
Composition of GWP in terms of sub-LoB’s (Q4,2012 data)
Total GWP
EEI
MB
CAR
EAR
TRL 941M
17%
46%
30%
7%
CAT Exposure
Fully insured against CAT perils
Limited exposure
Fully insured against CAT perils
Fully insued against CAT perils
Market Overview (Loss Ratio)
Combined ratio Engineering Lines 2012
Data provided by TSB and processed by Zurich Sigorta finance team
SWOT Analysis of CAT Exposure
Strengths
Restricted coverage compared to London market with no CBI
involved in CAR, EAR policies
Higher client retentions for EQ
SWOT Analysis of CAT Exposure
Weaknesses
Lack of actuarial pricing in the market and no reserve for CAT
pricing, pricing in the market relies on EQ tariff which is not
scientific.
Decision making dependant on reinsurance brokers’s modelling for
CAT
SWOT Analysis of CAT Exposure
Opportunities
38 Turkish contractors within Engineering News Record 225 with
international competitivenes which helps insurers difersify the EQ
risk
Government’s grow-with-construction policy
SWOT Analysis of CAT Exposure
Threaths
Soft market continuing especially for mid sized construction
business and driven by some agressive players.
Combined ratio not good enough to absorb an EQ loss in Cresta
Zones 1&3.
Number of qualified engineering underwriters not enough compared
to other line of businesses.
Thank you