While the efforts to expand the insurance market have accelerated in the last period, the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) has recently published the “Report on Insurance and Personal Pension Activities, 2020”, revealing different details about the situation 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
- Again, the share of the 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 partnerships decreased from 41 to 40, and in this context, the number of companies with international capital shares greater than 50 percent decreased from 37 to 36.
- The share of international capital in the paid-in capital decreased from 62.18 percent to 58.58 percent in one-to-one turnover. 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 stability published by the Central Bank, the direct investment in “insurance, reinsurance and pension funds (excluding compulsory social security)” made by international investors in Turkey was 6 million dollars in the first three months of 2022. This number 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 their sustainable success is their vision, which foresees the future expectations of their stakeholders while meeting their needs, and continued as follows: We meticulously analyze the risks and opportunities created by climate change. Our most important strategy is to be the sought-after insurance analysis partner of renewable power investments. We aim to increase our presence in this field in the coming periods with our innovative services for renewable power 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 those in this age group are excluded from 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 Participation Pension 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 formula. Ayhan Sincek, General Manager of Participation Pension, said, “Since the day we were founded, we have been enabling many processes to be carried out on our online platforms, with our digital-centered approach. We have now taken another valuable 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, which will model the assets that insurance and reinsurance companies will face due to disasters such as earthquakes.
SEDDK Cluster LEADER FOREST: VOLUNTEER STRENGTHENS ‘DIRECT COMPENSATION’
SEDDK Cluster Leader Fazilet 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.
Orman, who appreciated the valuable examples in Europe for the Reinsurer, emphasized that the countries generally built a system based on voluntariness and where the standard deviations in the middle of the document costs are relatively less, including material losses. Orman continued as follows: “By analyzing the data actuarially, it is seen that the system has been reshaped over the years, considering 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 with a gamification formula, 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.”
- It has been announced that Olayinkolayi.com site offers individual customers who will use housing, vehicle or consumer loans, with an average of 40 percent discount on “loan life insurance”. The period 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 DISCUSSION IS ALSO SHAPING THE INSURANCE MARKET
AGENT ON THE PATH TO METAVERSE
In the middle of the branches most affected by digital transformation, there is insurance. 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 necessities for the insurance department. Agencies will also provide services to their current and potential customers, especially for all insurance processes that will be needed in this cosmos.
- Chatbots, which can be defined if artificial intelligence forms come to life, will analyze what customers say in a very short time in the future and guide users to fulfill their requests.
- Artificial intelligence (AI)-based solutions will increase and will help insurance companies to achieve high efficiency in their operational processes.
- With the Internet of Things (IoT) systems, classical insurance claims will change, insurance companies will accelerate their information-oriented decision-making processes, and customers will not have to deal with paperwork processes.
- Blockchain technology will prevent invalid processes. It will ensure that physical and digital assets are registered.
Such developments will also affect consumer expectations, and especially the mid-18-25-year-old generation will focus on personalized structures, works and services that are personalized, flexible and affordable.
CELEBRATION AT QUICK INSURANCE
‘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 agents and brokers in 81 provinces and 608 districts.
In this context, Maher Holding Insurance Cluster Leader Ahmet Yaşar mentioned that they are in the middle of the most adequate non-life insurance companies with a market share of 3.11 percent, 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 effective size of 4 billion 750 million TL with digital projects, sustainable business policies, new investments and works from every branch.”
INNOVATION FROM MAPFRE INSURANCE
‘THE INSURANCE PEOPLE WANT TO FEEL SPECIAL’
It has been announced that MAPFRE Insurance 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, copyright and brand loyalty.
Referring to the change and competition in the market, MAPFRE Insurance Deputy General Manager Yıldırım Cinse said, “Today, customer experience also changes. The customer no longer wants to just buy a warranty. In addition to this, he wants to achieve the most wonderful in many valuable points in order to receive fast service, establish effective communication, be easy and accessible, and feel special.”