1 Alper Tan

2 Insurance Association of Turkey Turkish Insurance Industry Ongoing Projects of Association Content

3 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

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 InsuranceHealth Insurance Marine InsuranceLiability Insurance Casualty Insurance Agriculture Insurance Non-life ClaimsFinancial & Accounting Engineering InsuranceLaw & Legal Protection Life Insurance AML/CFT Risk EngineeringActuary

International Memberships Insurance Europe, European Insurance and Reinsurance Federation IAIS, International Association of Insurance Supervisors IMIA, International Association of Engineering Insurers IUMI, International Union of Marine Insurance ICC, International Chamber of Commerce FALIA, The Foundation for the Advancement of Life & Insurance

7 Turkish Insurance Industry

8 Life Life & Pension active companies 37 Non-life Reinsurance 1 1 8

9 Turkish Economy 2013 GDP 818 Billion $ GDP per capita 10,675 $ Inflation CPI 7.40% Inflation PPI 6.97% Unemployment 10.02% ( * ) GDP and unemployment are estimated

10 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.

11 Number of employees working in Turkish insurance industry , , , , ,137

Premium Production ( ) ($)

Premium production in Turkey: More than 11 billion USD Premium production in Turkey: More than 11 billion USD Real growth rate 13.5 % (in USD) Real growth rate 13.5 % (in USD)

Total Premium Production Per Capita ($) 14

Profitability of Turkish Insurance Industry (Non-Life) 15

16 Ongoing projects of Association

17 Association has focused on profitability of motor insurance. We have taken consulting services from two international firms. Projects; Direct settlement system Certification of body shops and spare parts used during repair Loss of support Fraud Projects

18 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 clients Insurance comnpany 1 Exchange 6 7 Body shop Faulty clients Insurance comnpany

19 Benefits of the system. Direct Settlement System InsuredInsurance CompanyInsurance 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

20 Certifation of eqivalent spare parts will increase trust of the client. Certification of spare parts Decrease in claims costs.

21 Consistent approach in assumptions and methodology needed Loss of support Will solve reserving and claims experience problems

22 SISBIS records should be updated Detection of fraud with analytical methods Focus on organised crime Fraud

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