ASSOCIATION OF THE INSURANCE
AND REINSURANCE COMPANIES OF
TURKEY–TSRŞB
TURKISH INSURANCE
SECTOR
July 2011
1
ASSOCIATION OF THE INSURANCE AND
REINSURANCE COMPANIES OF TURKEY

The Association of the Insurance and
Reinsurance Companies of Turkey is a
specialist
institution
with
the
characteristics of a unique nongovernmental institution operating under
Insurance Law No. 5684.

All local or foreign insurance and
reinsurance companies operating in
Turkey are members of the Association.
As of June 2011, the Association has a
total number of 64 members, 62 of them
being insurance companies and the
remaining
2
being
reinsurance
companies.
2
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
Health Insurance
Liability Insurance
Agriculture Insurance
Financial & Accounting
Law & Legal Protection
AML/CFT
3
INTERNATIONAL MEMBERSHIPS
• CEA, The 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
4
TURKISH INSURANCE
SECTOR
5
TURKISH ECONOMY IN 2010

National Income:
 GDP: 1.105 Billion TL (736 Billion USD)
 GDP per capita: 10.079 USD

Inflation:
 CPI (consumer price index): 6.40 %
 PPI (producer price index): 8.87 %

Unemployment: 11.4 %
6
WORLD INSURANCE SECTOR & TURKEY
(2009)

Total premiums: 4.1 Trillion USD (- 1.1 % decrease)

Premium size in:




Developed countries: 3.5 Trillion USD
Developing countries: 533 Billion USD
Turkey: 7.9 Billion USD
Real increase (inflation-adjusted):
 Developed countries : - 1.8 %
 Developing countries : 3.5 %
 Turkey: - 18.9 % ( - 2.3% in local currency)
7
WORLD INSURANCE SECTOR & TURKEY
(2009)

World premiums in percent of GDP : 7%







Developed countries:
Developing countries:
United Kingdom:
Poland
Hungary
Turkey:
8,6 %
2,9 %
12,9 %
3,8 %
3,1 %
1,3 %
World premiums per capita: 595 USD






Developed countries :
Developing countries:
United Kingdom:
Poland
Hungary
Turkey:
SOURCE: Swiss Re, Sigma No: 2/2010
3 405 USD
92 USD
4 579 USD
630 USD
398 USD
109 USD
8
TURKISH INSURANCE SECTOR
INSURANCE AND REINSURANCE COMPANIES
As of June 2011, the Association has 64 members. Out of these 64 companies,
62 are insurance (10 life, 14 life and pension and 38 non-life companies )and
remaining 2 are reinsurance companies.
INSURANCE AND REINSURANCE COMPANIES
2006
2007
2008
2009
2010
Insurance companies
53
56
59
58
62
Life
21
21
23
22
24
Non life
32
35
36
36
38
Reinsurance companies
2
2
2
2
2
TOTAL
55
58
61
60
64
WORKING AREA
9
EMPLOYMENT IN INSURANCE AND
REINSURANCE COMPANIES
As of the end of 2010, the number of people employed in the
insurance sector is 16.568.
Employment in Insurance and Reinsurance Companies
Year
2006
2007
2008
2009
2010
No. of
Employed
13 550
14 950
16 007
18 841
16 568
Around 15.000 agents, 81 broker and 1.072 loss adjuster operate in
Turkish insurance market.
10
PREMIUM PRODUCTION (2006 – 2010)
($)
11
PREMIUM INCOME ACCORDING TO THE BRANCHES ($)
Branches
Accident
Sickness
Land Vehicles
Railway Rolling Stock
Aircraft
Ships
Good in Transit
Fire and Natural Forces
Other Damage to Property
Motor Vehicle Liability
Aircraft Liability
Liability for Ships
General Liability
Credit
Suretyship
Miscellaneous Financial Loss
Legal Expenses
Assistance
Non Life Total
Life
Total
2010
(USD)
397.424.366
1.132.570.860
2.069.797.633
452.138
31.543.387
71.632.338
198.302.139
1.314.968.772
659.618.242
1.690.840.817
33.374.962
361.284
217.472.793
21.149.942
10.918.568
56.254.508
28.664.055
93.677
7.935.440.481
1.448.459.228
9.383.899.709
Percentage
Breakdown
(%)
Annual
Changes
(%)
4,24
12,07
22,06
0,00
0,34
0,76
2,11
14,01
7,03
18,02
0,36
0,00
2,32
0,23
0,12
0,60
0,31
0,00
84,56
15,44
100,00
14,96
23,82
21,65
357,42
-14,87
-1,52
18,71
6,45
12,85
18,74
9,62
49,25
33,96
18,08
1,50
33,10
20,86
0,00
17,21
24,01
18,21
12
DATA ON CASCO AND MOTOR TPL
INSURANCE (2009-2010) (USD)
Motor TPL
2010
2009
Premium
1.531.132.006
1.100.737.144
Paid Losses
1.190.806.978
1.036.389.286
Technical Profit
-388.968.453
-191.328.070
Casco
2010
2009
Premium
2.069.797.632
1.554.332.103
Paid Losses
1.558.995.938
1.581.061.462
-54.148.320
-235.330.024
Technical Profit
13
TOP TEN INSURANCE COMPANIES
(2010)
Rank
Non-life Companies
1
Axa
12,71 Ziraat Hayat ve Emeklilik
27,59
2
Anadolu
11,89 Anadolu Hayat Emeklilik
16,38
3
Allianz
8,33 Garanti Emeklilik
4
Ak
7,41 Halk Hayat ve Emeklilik
6,48
5
Yapı Kredi
6,35 AvivaSA
5,70
6
Gunes
6,17 Yapı Kredi Emeklilik
5,03
7
Groupama
5,81 Finans Emeklilik ve Hayat
3,91
8
Ergo
5,81 Vakıf Emeklilik
3,82
9
Eureko
5,18 Allianz Hayat ve Emeklilik
3,41
10
Mapfre Genel
3,45 Deniz Emeklilik ve Hayat
2,77
Top Ten Companies
Market
Share (%)
Life Companies
73,09 Top Ten Companies
Market
Share (%)
10,74
85,83
14
DISTRIBUTION CHANNELS
(2010)
15
TOTAL PREMIUM PRODUCTION
IN % OF GDP
2,00%
1,50%
1,18%
1,27%
1,28%
1,24%
1,29%
1,28%
2009
2010
1,00%
0,50%
0,00%
2005
2006
2007
2008
16
TOTAL PREMIUM PRODUCTION PER CAPITA
($)
17
TECHNICAL PROFIT/LOSS ACCORDING TO THE BRANCHES –
2010
Branches
Accident
Sickness
Land Vehicles
Railway Rolling Stock
Aircraft
Ships
Good in Transit
Fire and Natural Forces
Other Damage to Property
Motor Vehicle Liability
Aircraft Liability
Liability for Ships
General Liability
Credit
Suretyship
Miscellaneous Financial Loss
Legal Expenses
Assistance
Non Life Total
Life
Total
2010
USD
131.897.696
-22.815.849
-54.148.320
-380.402
-3.772.916
10.272.171
77.084.118
128.698.395
34.303.979
-320.116.714
107.315
18.463
-12.349.536
3.949.791
3.210.915
9.154.785
14.440.195
800
-445.112
95.946.185
95.501.073
Technical
Profit Ratio
2010
(%)
33,19%
-2,01%
-2,62%
-84,13%
-11,96%
14,34%
38,87%
9,79%
5,20%
-18,93%
0,32%
5,11%
-5,68%
18,68%
29,41%
16,27%
50,38%
0,85%
-0,01%
6,62%
1,42%
Technical
Profit Ratio
2009
(%)
44,10%
-8,26%
-13,84%
54,26%
-1,07%
16,15%
37,05%
9,81%
8,21%
-5,27%
-0,35%
15,21%
28,32%
-6,86%
3,58%
6,67%
57,15%
0,00%
1,04%
5,99%
1,86%
18
PROFITABILITY, ASSETS AND EQUITY
(USD)
2010
Ratio
(%)
2009
Ratio
(%)
Financial Profit
59.701.715
0,64
Balance Sheet Profit
(After Tax)
78.013.519
0,83
295.782.407
3,71
Shareholders Equity
4.766.970.772
1,64
5.727.972.521
5,16
24.337.101.552
0,32
20.295.217.560
1,46
Total Assets
247.753.286
3,11
Financial profit ratio= financial profit / gross premium
Balance sheet profit ratio = balance sheet profit / gross premium
Equity ratio = equity profit / total equity
Asset ratio = balance sheet profit / total assets
19
MOST ATTRACTIVE SEGMENTS IN FUTURE

General liability insurance


Mortgage insurance:



products should be more customer-focused
new system (legal background established in 2007)
new insurance products are expected to be introduced
Unemployment insurance:


becomes more important in times of global financial crises
Unemployment insurance products are widespread in countries like the UK,
Netherlands, Italy, Spain, etc. These products are expected to be more widely
demanded in the Turkish market in the near future.
20
LEGISLATIVE
DEVELOPMENTS
21
Turkish Insurance Law

“Turkish Insurance Law” enshrines 12 chapters and 47 articles.

All insurance and reinsurance companies operating in Turkey,
the Association of the Insurance and Reinsurance Companies of
Turkey, intermediaries, actuaries and insurance experts are
subject to this law.

Turkish Insurance Law was approved on June 3, 2007 at the
General Assembly of the Turkish Parliament and published in
the Turkish Official Gazette (No: 26552) on June 14, 2007.
22
Turkish Commercial Code &
Code of Obligations

The new Turkish Commercial Code was recently enacted. The new
Turkish Commercial Code introduces important novelties in the field
of consumer protection, categorization of insurance classes,
information society, etc. The Code will enter into force by July 2012.

The new Code of Obligations was recently enacted. The code which
regulates obligations between legal and natural persons and contains
provisions relating to insurance sector will enter into force by July
2012.
23
Draft Law on Catastrophe Insurances

Another important legal development in the Turkish insurance
market is the Draft Law on Catastrophe Insurances.

The Draft Law not only foresees the extension of the penetration
level for compulsory earthquake insurance through new measures
but also the completion of legislative and technical infrastructure
work for the extension of the Turkish Catastrophe Pool (TCIP)
indemnity to cover all natural catastrophes (flood, landfall, storm,
avalanche, hail), environmental pollution and terrorism.

The draft Law is still pending.
24
Draft Law Amending the Motorways Traffic
Law No. 2918

Draft Law Amending the Motorways Traffic Law No. 2918, which
is prepared in line with EU standards, envisages the introduction of
new traffic measures.

The Association of the Insurance and Reinsurance Companies of
Turkey has formulated the views of the insurance sector on the
Draft Law, specifically on measures relating to compulsory third
party liability insurance.

The Draft Law also empowers the Association to authorize “special
experts” to intervene traffic accidents with material damages. After
the coming into force of the Law, traffic police will only intervene
such accidents when traffic security necessitates.

The draft Law is still pending.
25
Solvency II

In Turkey’s EU harmonization process, the Turkish insurance
sector has been working on the implementation of Solvency II.

Within this context, a “Specialized Committee on Solvency II” was
established in accordance with Art. 33 of the Turkish Insurance
Law No. 5684.

A sample of ten insurance companies were determined to conduct
Quantitative Impact Study 4 (QIS 4), which had previously been
conducted by the European Commission in EU countries. QIS 5
was also started to be applied from December 2010.

The Solvency II Directive was also translated into Turkish and
distributed to companies by the Association.
26
Technical Reserves

There have also been major amendments to the “Regulation on
Technical Reserves of Insurance, Reinsurance and Pension
Companies”. In this context, a more developed and sophisticated
actuarial chain ladder method for the calculation of IBNR reserves
has been introduced.
27
Medical Malpractice Insurance

Medical malpractice insurance became compulsory in Turkey in
July 2010.

With the introduction of “Compulsory Liability Insurance on
Medical Malpractice”, doctors and dentists are required to be
covered by professional liability insurance.

Doctors working at public or private institutions will pay half their
insurance premiums and their institutions will pay the remainder.
Doctors working at their own private offices will pay the entire
premium.
28
Coastal Facilities Sea Pollution Compulsory
Liability Insurance

Another compulsory insurance that was introduced in 2010 with the
publication of tariffs and procedures is the “Coastal Facilities Sea
Pollution Compulsory Liability Insurance.”

In this context, all coastal facilities (including refineries, gas
terminals, power houses, industrial production facilities, shipyards,
etc.) are obliged to be covered by insurance against sea pollution.
29
THANK YOU FOR YOUR
ATTENTION…
ASSOCIATION OF THE INSURANCE AND REINSURANCE
COMPANIES OF TURKEY
www.tsrsb.org.tr
30
ASSOCIATION OF THE INSURANCE
AND REINSURANCE COMPANIES OF
TURKEY–TSRŞB
ENGINEERING INSURANCES
CONSTRUCTION & ENERGY
July 2011
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
400,000,000
350,000,000
300,000,000
250,000,000
MB/EEI GWP
MB/EEI TP
200,000,000
CAR/EAR GWP
150,000,000
CAR/EAR TP
100,000,000
50,000,000
0
2006
2007
2008
2009
2010
-50,000,000
2006
MB/EEI
CAR/EAR
GWP
TP
GWP
TP
2007
2008
2009
2010
277.129.717
324.673.127
337.416.835
352.165.091
390.991.515
10.643.758
11.651.297
22.260.415
238.822
-2.745.705
153.554.273
199.282.482
197.801.146
270.840.192
191.242.338
23.691.734
33.866.537
25.298.701
25.639.606
18.610.479
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
Turkish installed generation capacity by fuel (September 2010)
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
Distribution of HEPP in number and in MW
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
27 HEPP,
WHICH HAVE 100 MW OR HIGHER CAPACITY, REPRESENTING
77%
OF TOTAL INSTALLED HYDRO CAPACITY OF TURKEY
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
TURKEY’S HYDRO ENERGY POTENTIAL
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
1.500 HEPP
ARE IN PROJECT PHASE
FROM
1 MW
TO
FROM
EUR 5 MIO
TO
100 MW
EUR 100 MIO
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
MAIN UNDERWRITING PROBLEMS OF HEPP PROJECTS IN TURKEY

LACK OF INFORMATION

INSUFFICIENT FLOOD RECURRENCE PERIOD IS USED
FOR DESIGN OF UPSTREAM COFFERDAM SUCH AS 2 – 5 – 10 YEARS

SOMETIMES ACCUMULATION PROBLEM CAUSED BY
VERY CLOSE HEPP LOCATIONS

DEDUCTIBLE LEVEL IS AT LOW SIDE COMPARING TO INT. MARKET
SUCH AS 20% COINSURANCE WITH THE INSURED AND
2% DEDUCTIBLE FOR EQ & SRCC + S&T
USD 50,000,- FOR ALL OTHER ACT OF GOD
USD 50,000.- FOR OVERTOPPING
USD 20,000.- FOR ALL OTHER LOSSES
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
THERE ARE ONLY
800 WIND TURBINES IN 41 WIND FARMS IN OPERATION AND
388 WIND TURBINES IN 19 WIND FARMS UNDER ERECTION
LIST OF WIND FARMS ARE AS FOLLOWS ;
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
TURKEY’S WIND ENERGY POTENTIAL
Installed Capacity in Wind:
1.415 MW
Turkey’s Technical Wind Energy Potential:
120 GWh/yr
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
WIND POWER CAPACITY
18 MW IN
2004
1.415 MW AS OF MARCH 2011
TECHNICAL AND ECONOMICAL CAPACITY :
12.000 MW
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
LARGE LOSSES (> USD 1,000,000.-) OCCURRED IN 2010
USD 4,000,000 PAID IN 3 MB LOSSES
USD 8,000,000 PAID IN 4 CAR/EAR LOSSES
USD 2,000,000 O/S IN 2 CAR/EAR LOSSES
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
LARGE LOSSES (> USD 1,000,000.-) OCCURRED IN 2010
IN TOTAL
USD 14,000,000 PAID IN
9 CIRCUMSTANCES
USD 5,000,000 CAUSED BY FLOOD
ASSOCIATION OF THE INSURANCE AND REINSURANCE COMPANIES OF TURKEY–TSRŞB
ENGINEERING INSURANCES COMMITTEE
EXPECTATIONS FROM LLOYD’S MARKET AND OTHER R/I MARKETS

COUNTING ON THE EXPERTISE AND UW APPROACH OF LOCAL UW’S

BEING READY TO FOLLOW THE RATES AND DEDUCTIBLES
OF THE LOCAL MARKET / ORIGINAL POLICY

SHARING THE EXPERIENCE, ESPECIALLY FOR THE NEW AREAS
SUCH AS WIND ENERGY OR ALOP/DSU COVERAGES
ASSOCIATION OF THE INSURANCE
AND REINSURANCE COMPANIES OF
TURKEY–TSRŞB
PROPERTY INSURANCE
Property Insurance
Key Products sold in Market
Fire Commercial : Covers commercial properties such as hotels, shops against any
physical loss or damage to the property resulting from or arising out of the covered
perils as detailed on the policy. It is a named peril basis coverage.
Fire Personal : Covers households against any physical loss or damage to the
property resulting from or arising out of the covered perils as detailed on the policy.
It is a named peril basis coverage.
Fire Industrial : Covers industrial properties such as production facilities, small to
large scale, against any physical loss or damage to the property resulting from or
arising out of the covered perils as detailed on the policy. It is a named peril basis
coverage.
54
Property Insurance
Policies are mostly combined package policies.
*Main coverages are;
•Fire
•Lightning
•Explosion
* Additional Coverage ;
• Earthquake & Volcanic Eruption
• SRCCMA-Terrorism
• Flood
•Water Damage
•Liability
• Storm
• Snow Weight
• Glass Breakage
• Theft
• Loss of Profit
•Vehicle Impact
55
Property Insurance
56
Property Insurance
Policy Numbers
57
Property Insurance
58
Property Insurance
Important headlines
• Competitive market conditions
• Lower growth at premium production compared to policy numbers.
• New Commercial Code will be effective from July 2012
•Awarness should be increased
59
Fire Premium Income Information on the Basis of Insurance
Companies(2010)
Insurance Company
Premium Income (TL)
Market Share
1
Axa
281.480.898
% 14,22
2
Anadolu
227.391.403
% 11,49
3
Allianz
182.252.501
% 9,21
4
Ak Sigorta
140.849.085
% 7,11
5
Gunes
128.725.398
% 6,50
6
Eureko
126.386.677
% 6,38
7
Yapı Kredi
103.561.926
% 5,23
8
Ergo
102.635.278
% 5,18
9
Groupama
86.584.089
% 4,37
10
Aviva
68.020.283
% 3,44
60
THANK YOU FOR YOUR
ATTENTION…
ASSOCIATION OF THE INSURANCE AND REINSURANCE
COMPANIES OF TURKEY
www.tsrsb.org.tr
ASSOCIATION OF THE INSURANCE
AND REINSURANCE COMPANIES OF
TURKEY–TSRŞB
MARINE INSURANCE
MARINE INSURANCE COMMITTEE
Marine Insurance Committee composed of 10 members meets on a monthly basis to
discuss issues relating to our local market and to the marine insurance industry in
general.
The committee serves as a consulting body for all marine insurance practitioners in
insurance companies as well as for insurers who raised questions regarding marine
insurance matters.
The purpose of the committee is
to promote good practice in profession
to monitor and comment on all key developments and issues relating to marine
insurance and provide recommendations to the market
the interchange of views, opinions and personal experience
to facilitate the preparation and revision of general conditions of marine
insurance policies.
MARITIME SECTOR IN TURKEY





Number of Turkish flagged vessels: 1722 in 2009 with
average age of 21.
Number of Turkish owned vessels: 2222 *
Turkey is on the white list regarding Paris MoU port state
controls since 2008, the performance of Turkish flagged
vessels are improving.
Considering the Paris MoU PSCs Turkish Lloyd has been
rated as “high performance” for 4 years.
Turkish Lloyds’ “classification society status” is confirmed
by IACS in 2010.
SOURCE: www.sea-web.com
64
MARITIME SECTOR IN TURKEY
71 active shipyards in 2011 and there are new
investments.
Undersecretariat of Treasury has provided support to
Credit Guarantee Fund for shipbuilding. The financial
support has been granted to incomplete newbuildings for
completion.
Turkey ranks at the 6th level with 127 vessels as for 2010
when the world shipbuilding orders are considered.
Some yards are switching from newbuilding to
maintenance and repair activities.
65
TURKISH SHIPYARDS
71 SHIPYARDS
66
MARITIME SECTOR IN TURKEY
Specialised on yachts
Turkey is an important center for
yachting with its marinas,
yacht construction and
boat yards in Mediterranean basin.
Coaster Fleet Project
50 vessels with dwt of 5000 to be built
New port invetsments
Çandarlı port will be one of the World’s 10 largest ports
New regulation for obligatory P&I insurance
for vessels arriving or departing from Turkish ports.
67
TURKISH MARINE INSURANCE MARKET
GROSS PREMIUM INCOME (000 TRL)
2010
Variation
(%)
2009
Variation
(%)
2008
CARGO
298.641
14,25
261.394
-16,47
312.920
HULL
107.867
- 4,20
112.590
11,83
100.681
SOURCE: TSRŞB Statistics
MAIN CHARACTERISTICS OF MARINE
INSURANCE MARKET



In terms of premium income, the share of marine
insurance is very low, i.e. 2,87 %.
The share of marine insurance is expected to be increased
as a result of developments in shipping industry and
expanding trading volume.
Despite the competition and downturn rates of cargo
insurance, it is a profitable class of business.



Technical profit ratio in 2010 for cargo and hull: 39% and 14%
respectively.
Hull market experienced a major fall in vessel values for
the last 2 years, and premium income was impacted by
the reduction in values.
The share of marine liability insurances is expected to be
increased as a result of new developments.
69
THANK YOU FOR YOUR
ATTENTION…
ASSOCIATION OF THE INSURANCE
AND REINSURANCE COMPANIES OF
TURKEY–TSRŞB
GENERAL LIABILITY
IN
INSURANCE SECTOR
PREMIUM
ANNUAL PREMIUM PRODUCTION
2008
General Liability
2009
233.467.226 TL 251.943.332 TL
Share in non-life
Production
2,38%
ROC
2010
ROC
7,9%
327.658.844 TL
30,1%
2,47%
2,84%
TOTAL PREMIUM PRODUCTION FOR END OF THE APRIL
2009
2010
ROC
90.749.069 TL 108.995.092 TL 20,1%
2011
ROC
126.535.967 TL
16,1%
NEW COMPULSORY PRODUCTS
COMPULSORY MEDICAL PRACTICE:
•
Indemnity Limit: 300,000 TL per occurence
(there is no annually aggregate limit)
•
Policy Trigger;
1 year Retro.date
2009
2010
2 years ERP
2011
Policy Period
2012
2013
NEW COMPULSORY PRODUCTS
ON SHORE POLLUTION LEGAL LIABILITY:
•
The policy is compulsory for industrial units (located side coast or
near the side coast) and on-shore units,
THANK YOU FOR YOUR
ATTENTION…
ASSOCIATION OF THE INSURANCE AND REINSURANCE
COMPANIES OF TURKEY
www.tsrsb.org.tr