TURKISH AGRICULTURAL INSURANCE POOL
(TARSIM)
Contents
Overview of Turkish Agriculture
Agricultural Risk Management and Insurance System
Insurance Products and Loss Handling
Agricultural Insurance in Figures
Rural Population: 23 %
Number of Farmers: 2,2 Million
GDP of Agriculture: 8 % (62,5 Billion $)
Agricultural Export: 16 Billion $
Total Agricultural Area: 24 Million ha
Avg. Size of Farm: 6 ha
In terms of agricultural economy, TURKEY ranks 1st in Europe, and 7th in the World.
GTHB, 2013
OVERVIEW OF TURKISH AGRICULTURE
The Distribution of Agricultural Land
Field crops66%
Fallow land17%
Vegetables3,4%
Vineyards1,8%
Fruits8,2%
Olives3,6%
Total Agricultural Area: 24 Million ha.
TÜİK-2013
OVERVIEW OF TURKISH AGRICULTURE
TURKEY
The Rank of Some Crops in the World
StrawberriesPistachiosApplesChickpeasPepper
FAO-2012
QuinceApricotRaisinFigsHazelnutsCherries
LeeksWatermelonMelonCucumber
Number of Livestock
TUİK 2014
31,1
14,1
10,3
Sheep Cattle Goats
Million Head
AGRICULTURAL RISK MANAGEMENT
AND
INSURANCE SYSTEM IN TURKEY
MINIMIZING THE DAMAGES OF NATURAL CATASTROPHES IN AGRICULTURE
Government enacted;
2090 Law of ad-hoc payments to farmers suffered from natural disasters
5996 Law of Veterinary services, crop health, food and fodder
DIRECT PAYMENTS OF THE GOVERNMENT
The sources in the funds are limited and direct payments did not meet the farmers needs.
With these financial aids of the government
- The effect of natural catastrophes could not be mitigated
and
- Income stabilization in agriculture could not be achieved.
1957 : Private Agricultural Insurance
1957 : Crop-Hail Insurance
1960 : Cattle Insurance
1984 : Poultry Insurance
1990 : Aquaculture Insurance
2006 : State Supported Agricultural Insurance (PPP)
HISTORICAL DEVELOPMENT OF AGRICULTURAL INSURANCEIN TURKEY
AGRICULTURAL INSURANCE SYSTEM(TARSIM)
GOVERNMENT
INSURANCE SECTOR
AGRICULTURAL SECTOR
LEGAL FRAMEWORK
Agricultural Insurance Law (2005)
Regulation of Implementation of Agricultural Insurance (2006)
Regulation about Working Principles of the Agricultural Insurance Pool (2006)
Annual decisions of the Council of Ministers regarding Coverage and Subsidies
THE POOL SYSTEM
HOLISTIC STRUCTURE Business managed as a unique organization
STANDARDISATION Transparent and uniform terms and conditions
PRODUCTIVITY AND ECONOMIES OF SCALEPossibility to buy insurance with lower premium rates
HIGH ASSURANCEFarmers insurance needs are highly met by extending the coverage
SUSTAINABILITY
BASIC FEATURES OF THE SYSTEM
• Agricultural Insurance Pool
• Management Company
• Government Subsidy in Premium and Losses
• Voluntariness
• Farmers Registration System (FRS)
• Coverage
• Supervision
PRIVATE SECTOR
NGOGOVERNMENT
Union of Turkish Agricultural
Chambers (1)
Insurance Association of Turkey (1)
AGRICULTURAL
INSURANCE
POOL
Ministry of Food, Agriculture and
Livestock (2)
Undersecretariat of the Treasury (2)
Agricultural Insurance Pool Management Company (1)
CORPORATE STRUCTURE OF THE POOL
BASIC FEATURES OF THE SYSTEM
• Agricultural Insurance Pool
• Management Company
• Government Subsidy in Premium and Losses
• Voluntariness
• Farmers Registration System (FRS)
• Coverage
• Supervision
PRIVATE SECTOR
NGOGOVERNMENT
Union of Turkish Agricultural
Chambers (1)
Insurance Association of Turkey (1)
AGRICULTURAL
INSURANCE
POOL
Ministry of Food, Agriculture and
Livestock (2)
Undersecretariat of the Treasury (2)
Agricultural Insurance Pool Management Company (1)
CORPORATE STRUCTURE OF THE POOL
Implement the decisions taken by the Board of the Pool
Collect premiums and pay indemnities
Manage resources of the Pool for investment
Carry out all kinds of works and organizations
- Development of insurance product
- Underwriting procedures and principles
- Actuarial studies
- Risk inspections
- Loss handling
- Training of loss adjusters and sales channels
- Geographical Information System (GIS)
- Research & Development
- Data management
- Public relations and publicity campaigns
DUTIES OF MANAGEMENT COMPANY
BASIC FEATURES OF THE SYSTEM
• Agricultural Insurance Pool
• Management Company
• Government Subsidy in Premium and Losses
• Voluntariness
• Farmers Registration System (FRS)
• Coverage
• Supervision
Premiums
INSURANCECOMPANIES
FARMERS
Indemnifications
Premium Subsidy
Premiums
GOVERNMENT
REINSURANCE COMPANIES
Co-financing for losses
RISK TRANSFER MECHANISM AND GOVERNMENT SUBSIDY
Reinsurance
BASIC FEATURES OF THE SYSTEM
• Agricultural Insurance Pool
• Management Company
• Government Subsidy in Premium and Losses
• Voluntariness
• Farmers Registration System (FRS)
• Coverage
• Supervision
INSURANCE PRODUCTS
INSURANCE PRODUCTS
Beehives Insurance
Crop Insurance
Greenhouse Insurance
Cattle Insurance
Sheep and Goats Insurance
Aquaculture Insurance
Poultry Insurance
HISTORICAL DEVELOPMENT INSURANCE COVERAGES
2006• First policy in June in Crop Insurance
• Crop, Cattle, Greenhouse and Poultry Insurance
2007
• Frost cover for fruits
• Abortion
• Aquaculture Insurance
2008 • Vehicle Impact and EQ covers in Greenhouse Insurance
2009 • Snow and hail weight cover in Greenhouse Insurance
2010 • Flood cover in Crop and Greenhouse Insurance
2011
• Flowering period in Frost Cover
• Fattening cattle in Cattle Insurance
• Sheep & Goats Insurance
2013• Flowering period for hail, storm and flooding perils in fruits.
• Land Pools In Aquaculture Insurance
2014 • Beehives Insurance
2015
• Stem of cereal crops • Hail nets and cover systems • Cage and nets in aquaculture • Wild animal attack in beehives
INSURANCE PRODUCTS AND COVERAGE
Insurance Line Coverage Scope
Crop Insurance
• Hail (incl. quality)
• Storm
• Flood
• Fire, EQ
• Landslide
• Tornado
• Frost (for fruits only)
• Field crops
• Fruits
• Vegetables
• Cut flowers
• Seedlings
INSURANCE PRODUCTS AND COVERAGE
Insurance
LineCoverage Scope
Greenhouse
• Hail
• Storm
• Flood
• Fire, EQ
• Landslide
• Tornado• Vehicle impact• Snow and Hail Weight
• Crop• Plastic + Glass Cover• Construction• Technical Equipment
Insurance Line Coverage Scope
Cattle • Mortality• Abortion
• Dairy & Fattening Cattle, Buffalo
Sheep & Goats • Mortality • Sheep, Goats, Rams
Poultry • Mortality• Broiler, Hen, Chicken• Turkey• Ostrich
Aquaculture • Mortality• Sea bass, Sea bream,• Trout, Tuna
Beehives• Damage (Storm, Tornado, Fire, EQ, Flood, Wild Animal Attacks, Landslide, Vehicle impact, Transport)
• Hives
INSURANCE PRODUCTS AND COVERAGE
FRS / VIS
(*)
REGISTER
CONTROL
POLICY ISSUANCE WORKFLOW
FARMER
APPROVAL
INSURANCE
APPLICATION
POLICYINFORMATION
UPDATE
APPROVAL
AGENCY
(*) Farmers Registration System
Vet Information System
29
LOSS HANDLING
LOSS ADJUSTMENT ORGANIZATION
Bursa
Manisa
Ankara
Antalya
Adana
Malatya
Giresun
Number of Loss Adjusters
Crop Insurance 1.166
Livestock Insurance 990
Aquaculture Insurance 63
Total 2.219
Tekirdağ
FARMER LOSS
ADJUSTERS
ADJUSTMENT
CROP AND GREENHOUSE INSURANCE
LOSS PAYMENT(**)
HOW TO PAY LOSSES?
NOTICE OF CLAIM / ADJUSTMENT/ PAYMENT
WORKFLOW
INSURANCE
COMPANY
(AGENCY)
LOSS ADJUSTER’S
REPORT
NOTICE OF
CLAIM
(**) Loss payment will be made to the insured’s bank account.
32
NOTICE OF CLAIMPOLICY OWNER / INSURED
(Producer)
VETERINARY SURGEON
(Loss Adjustment)LOSS REPORT
LIVESTOCK INSURANCES
LOSS PAYMENT
HOW TO PAY LOSSES?
NOTICE OF CLAIM / ADJUSTMENT/ PAYMENT
WORKFLOW
33
AGRICULTURAL INSURANCE
IN FIGURES
NUMBER OF POLICY
12.330
218.938260.944
306.770
371.116
587.716
744.093
891.876
1.086.6121.106.667
%19%18
%21 %58
%27
%20
%22
2007 2008 2009 20102006 2011 2012 2013 2014 2015
As at 30.04.2015
PREMIUM (MILLION TL)
2007 2008 2009 20102006 2011 2012 2013 2014 2015
4
64
98120
185
441
499527
684 695
54%22%
54%
138%
13%
6%
30%
As at 30.04.2015
SUM INSURED (MILLION TL)
211
1.478
2.225
2.901
3.988
6.986
9.497
11.253
13.895
11.718
50%30%
37%
54%
28%
11%
7%
2007 2008 2009 20102006 2011 2012 2013 2014 2015
As at 30.04.2015
12.980
348.995
443.518
560.239
661.955
920.323
1.205.464
1.434.105
1.605.525 1.590.690
INSURED AREA (Ha.)
%27
%26
%18
%39
%31
%19
%12
2007 2008 2009 20102006 2011 2012 2013 2014 2015
As at 30.04.2015
Number of Cattle
Number of Sheep & Goats
NUMBER OF INSURED ANIMAL
6.489 54.499 71.955112.198
188.436
361.259420.160 403.978 435.896
148.517
68.565
336.636423.537
607.609
226.913
2007 2008 2009 20102006 2011 2012 2013 2014 2015
As at 30.04.2015
1.1181.456
2.489
3.622 3.456
6.431
14.244
16.25216.890
2.810
NUMBER OF CLAIMS FILES
2007 2008 2009 20102006 2011 2012 2013 2014 2015
As at 30.04.2015
PAID LOSS (MILLION TL)
0,87
41 40
89114
210
261
386
502
65
2007 2008 2009 20102006 2011 2012 2013 2014 2015
As at 30.04.2015
1.1181.456
2.489
3.622 3.456
6.431
14.244
16.25216.890
2.810
2007 2008 2009 20102006 2011 2012 2013 2014
NUMBER OF INSURED GREENHOUSE
2015
As at 30.04.2015
LOSS RATIOS (%)
Loss Ratio: (Paid & OS Loss) / Earned premium
As at 30.04.2015
75
88
45
8086
64
50
69
80
68
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Avrg
%27
%84
%24
%48
ÖDENEN TAZMİNAT (Bin TL)
1.380
1.243
62
1.857
158
388
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
2.600
2.800
3.000
3.200
3.400
2.623
2.404
2006-2014WIN – WIN (MILLION TL)
Premium Paid by Farmer
Government Premium
Subsidy
Occurred Losses (including LAE)
Operational Expenses (including RIE)
Agency Expenses
Unearned Premium
Thank you for your attention.
Yasal uyarı
©2015 TARSIM. Tüm hakları saklıdır.
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rağmen, TARSİM verilen detayların doğruluğu ya da kapsamından dolayı hiçbir şekilde sorumlu tutulamaz. Bu nedenle, sunumun doğruluğuna
ve tamlığına ilişkin veya sunumda yer alan bilgilerin kullanımından kaynaklanan herhangi bir zarara ilişkin sorumluluk kesinlikle kabul edilmez.
Hiçbir koşulda, TARSİM bu sunuma ilişkin herhangi bir mali ve / veya dolaylı kayıptan dolayı sorumlu tutulmayacaktır.
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