While the efforts to expand the insurance market have accelerated recently, the “Report on Insurance and Private Pension Activities, 2020”, which was recently published by the Insurance and Private Pensions Regulation and Supervision Agency (SEDDK), revealed interesting details about the state of the sector. Here are the highlights:
- While the total premium production decreased from 10.9 billion dollars to 10.8 billion dollars in Turkey from 2019 to 2020, it remained at the level of 6.3 trillion dollars in the world. The ratio of total premium to gross domestic product increased from 1.45 percent to 1.5 percent in Turkey and from 7.23 percent to 7.4 percent in the world.
$128 PER PERSON
- In the same period, the share of non-life branch decreased from 84.5 percent to 81.1 percent in Turkey, while it rose from 53.7 percent to 55.5% in the world. While the share of life branch increased from 15.4 percent to 18.9 percent in Turkey, it decreased from 46.3% to 44.5 percent in the world.
- Total premium production per capita decreased from $131 to $128 in Turkey and from $818 to $809 worldwide.
- The most striking development in terms of the insurance market is the case of companies with international partners. From 2019 to 2020, the number of companies with international partners decreased from 41 to 40, and in this context, the number of companies with an international capital share greater than 50 percent decreased from 37 to 36.
- In the same period, the share of international capital in the paid-in capital decreased from 62.18 percent to 58.58 percent. Looking at the last 10 years, this share had increased to 71.94 percent in 2013.
THE RATE IS SIMILAR IN ‘LIFE’
Looking at the 2019-2020 difference in terms of sub-branches, the share of international capital decreased from 64 percent to 58.72 percent in non-life, while it increased from 57.65 percent to 58.3 percent in life.
$6 million in the first three months
According to the data in the balance of payments released by the Central Bank, the direct investment of international investors in “insurance, reinsurance and pension funds (excluding compulsory social security)” in Turkey was 6 million dollars in the first three months of 2022. This figure was 3 million dollars in the same period of last year.
RENEWABLE ENERGY SERVICES WILL BE INCREASED
It was announced that Anadolu Sigorta published its sustainability-focused activities as an integrated report for the first time this year.
Anadolu Sigorta General Manager Mehmet Şencan stated that the basis of its sustainable success is its vision that foresees future expectations while meeting the needs of its stakeholders and continued as follows: We meticulously analyze the risks and opportunities created by climate change. Our main strategy is to be the sought-after insurance solution partner of renewable energy investments. We aim to increase our presence in this area in the coming periods with our innovative services for renewable energy investments, which we see as a great opportunity for our country.”
AUTOMATIC BES WILL BE ACTED OVER 45 YEARS OF AGE.
Erol Öztürkoğlu, General Manager of Fibaemeklilik, reminded that the regulation that allows employees over 45 years of age to be included in the automatic BES upon request is in effect, and stated that this would significantly increase participation in the system. Öztürkoğlu continued: “The majority of people in this age group stay out of this advantageous system where they can invest in their retirement years while continuing their working life.” Öztürkoğlu also reminded the state contribution and the one-time additional state contribution of 1000 TL.
‘WE TAKE A NEW STEP AT BES WITH DIGITAL TRANSFORMATION’
It has been announced that Katılım Emeklilik offers online BES service via its website. Those who want to take the “Practical BES” and “Early BES” plans offered by the company for those under the age of 18 will be able to do all their related processes with this method. Participation Pension General Manager Ayhan Sincek said, “Since the day we were founded, we have been enabling many transactions to be done through our online platforms, with our digital-centered approach. Now we have taken another important step,” he said. Sincek stated that they still manage 880,000 BES contracts.
NEW DISASTER STEP FROM TURKRE
THEY ESTABLISHED A PLATFORM FOR CATASTROPHIC MODELING
Türk Reasürans introduced the Catastrophic Modeling Platform, CATMOD, where insurance and reinsurance companies will model the liabilities they will face due to disasters such as earthquakes.
Türk Reinsurance General Manager Selva Eren stated that they feel responsible for the management quality of such risks and think that they should specialize: “We have completed our verifications in our earthquake hazard calculations. We aim to actively use the platform in 2023 renewals and make it available to our industry stakeholders.” Turkish Reinsurance Chief Modeler Prof. Dr. Sinan Akkar, on the other hand, emphasized that they set out on this road with the aim of bringing an important competence center to the sector and that the added value would increase exponentially.
SEDDK GROUP PRESIDENT FOREST: IN ‘DIRECT COMPENSATION’ VOLUNTEERING IS OVER
SEDDK Group President Erdem Orman stated that the direct compensation system (DTS), which is also on Turkey’s agenda in terms of compulsory traffic insurance, is generally based on volunteerism.
Evaluating the important examples in Europe for the Reinsurer, Orman emphasized that in general, countries have built a system that is based on voluntariness and in which the standard deviations between file costs are relatively low, material losses are included in the scope. Orman continued as follows: “By analyzing the data actuarially, it is seen that the system has been reshaped over the years, taking into account both the sustainability of compulsory traffic insurance and its effects on vehicle owners and rights holders damaged in traffic accidents.”
BRIEF FROM THE INDUSTRY
- Allianz Turkey’s “Allianz Technical Meets with Children” project, which aims to increase risk awareness in children over the age of 10 through gamification, was carried out this year in cooperation with the Educational Volunteers Foundation of Turkey.
- It has been announced that Ercan Eryaşar has been appointed as the General Manager of Howden ACP. Eryaşar said, “We would like to emphasize once again that we will continue our rapid growth as one of Turkey’s leading insurance brokers.”
- Sigortayeri General Manager Ali Gülcan stated that they came before consumers with their renewed corporate identity, logo and sales experience and said, “Our new motto is; This is where the change in insurance begins.”
- It has been announced that the website Olayinkolayi.com offers the “loan life insurance” product with an average of 40 percent discount to individual customers who will use housing, vehicle or consumer loans. The right of withdrawal is 60 days.
- It has been announced that Bart Kulach has been appointed as the Deputy General Manager of NN Hayat ve Emeklilik Information Technologies. Kulach joined NN Group in 2007, most recently an information security manager at Insurance International.
THE TECHNOLOGY REVOLUTION IS ALSO RESHAPING THE INSURANCE MARKET
AGENT ON THE PATH TO METAVERSE
Insurance is one of the sectors most affected by digital transformation. Generali Sigorta Deputy General Manager Erkan Fuat Işıksal, who made a statement in this context and stated that customer expectations, needs and business processes will affect insurance, drew attention to the new dynamics for the next five years:
- Metaverse will bring along the needs of the insurance industry. Agencies will also provide services to their current and potential customers, in particular for all insurance transactions that will be needed in this universe.
- Chatbots, which can be defined as the introduction of artificial intelligence forms into life, will analyze what customers say in a very short time in the future and guide users to fulfill their requests.
- Artificial intelligence (AI) supported solutions will increase and will help insurance companies to achieve high efficiency in their operational processes.
- With the Internet of Things (IoT) systems, traditional insurance claims will change, insurance companies will accelerate their data-driven decision-making processes, and customers will not have to deal with paperwork.
- Blockchain technology will prevent fraudulent transactions. It will ensure that the record of belonging to physical and digital assets is kept.
Such developments will also affect consumer expectations, and especially the generation between the ages of 18-25 will focus on personalized structures, products and services that are personalized, flexible and suitable for their budgets.
CELEBRATION AT QUICK SİGORTA
‘WE REACHED 4.7 BILLION LIRA IN 5 YEARS’
It has been announced that Quick Insurance, in its fifth year of establishment, provides services in line with the needs of its policyholders with its 3,535 agencies and brokers in 81 provinces and 608 districts.
In this context, Maher Holding Insurance Group President Ahmet Yaşar stated that they are among the best non-life insurance companies with a 3.11 percent market share, while Quick Insurance General Manager Eyüp Özsoy drew attention to the following: “We are not just an insurance company that issues policies. Today, we are a giant company with a total asset size of 4 billion 750 million TL with digital projects, sustainable business policies, new investments and products from all branches.”
INNOVATION FROM MAPFRE SİGORTA
‘THE INSURANCE PEOPLE WANT TO FEEL SPECIAL’
It has been announced that MAPFRE Sigorta aims to offer category-specific services and benefits by grouping its customers as platinum, gold and silver, with its application designed with different parameters such as premium, product ownership and brand loyalty.
Referring to the change and competition in the market, MAPFRE Insurance Deputy General Manager Yıldırım Türe said, “Today, customer experience is also changing. The customer no longer wants to just buy an assurance. In addition, he wants to achieve the best in many important points such as getting fast service, communicating effectively, being easy and accessible, and feeling special.