1 alper tan. 2 insurance association of turkey turkish insurance industry ongoing projects of...

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Alper Tan

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Insurance Association of Turkey

Turkish Insurance Industry

Ongoing Projects of Association

Content

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Insurance Association of Turkey

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 non-governmental 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 Health Insurance• Marine Insurance Liability Insurance• Casualty Insurance Agriculture Insurance• Non-life Claims Financial & Accounting• Engineering Insurance Law & Legal Protection• Life Insurance AML/CFT• Risk Engineering 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

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Turkish Insurance Industry

Turkish Insurance Industry

8 Life Life & Pension18

64 active companies

37 Non-life Reinsurance1

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Turkish Economy 2013

GDP818 Billion $

GDP per capita 10,675 $

InflationCPI 7.40%

InflationPPI 6.97%

Unemployment10.02%

( * ) GDP and unemployment are estimated

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World Insurance Industry vs Turkey

World average - Premiums in percent of GDP is 6.5%

World average - Premiums per capita is 656 USD

Developed Countries

8.6%

Developing Countries

2.7%

USA

6.8%UK

11.2%Turkey

1.4%

Developed Countries

3,677 $

Developing Countries

120 $

USA

4,047 $UK

4,350 $Turkey

146 $

SOURCE: Swiss Re, Sigma No: 3/2013.

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Number of employees working in Turkish insurance industry

2009

16,3002010

16,5682011

17,3142012

17,7042013

18,137

Premium Production (2009-2013) ($)

2009 2010 2011 2012 2013

Non Life

6770 7935 8616 9508 9762

Life 1168 1448 1598 1505 1590

Total 7938 9383 10214 11013 11352

1,0003,0005,0007,0009,000

11,000

MIL

LIO

N U

SD

Premium productionin Turkey: More than 11 billion USD

Real growth rate13.5%(in USD)

1980

1990

2000

2011

2012

2013

020406080

100120140160

413

40

136146 148

Total Premium Production Per Capita ($)

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Profitability of Turkish Insurance Industry(Non-Life)

2009 2010 2011 2012 2013

-1,500,000

-1,000,000

-500,000

0

500,000

1,000,000

130,8672,940

58,587

-589,006

834,511

-660,354-714,972

-652,627

-1,346,519

47,596

(000 TL)

Total Technical Profit Profit of MOD+MTPL

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Ongoing projects of Association

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Association has focused on profitability of motor insurance. We have taken consulting services from two international firms.

Projects; Direct settlement systemCertification of body shops and spare parts used

during repairLoss of supportFraud

Projects

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With the implementation of direct settlement system no faulty insured will approach to his own insurance company

(MTPL)…

Direct Settlement System

No faulty insured

No faulty client’sInsurance comnpany

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Exchange

67

Body shop

Faulty client’sInsurance comnpany

4 5

2

3

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Benefits of the system.

Direct Settlement System

Direct Settlement System

Insured Insurance Company

Insurance sector

Improved customer satisfaction

Faster claims handling

Repair shop networks

Decrease in IBNR

Less conflict

Decrease in subrogation costs

Cost control

New products

Improved reputation

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Certifation of eqivalent spare parts will increase trust of the client.

Certification of spare parts

Decrease in claims costs.

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Consistent approach in assumptions and methodology needed

Loss of support

Will solve reserving and claims experience problems

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SISBIS records should be updated

Detection of fraud with analytical methods

Focus on organised crime

Fraud

Thank you for your attention!

Thank you for your attention