1. Trends Shaping The Insurance Industry Eficert Conference Istanbul 95 50 HIGH PERFORMANCE U ğ ur Ergün

2. 95 50 Ugur Ergun A brief presentation of five major trends that will shape insurance industry over five to ten years period

3. 95 50 Ugur Ergun Education –B.Sc. in Computer Engineering –MBA IT Industry –Engineer, Manager –Amsterdam, Brussels, Istanbul Insurance –Life, Non-Life Executive –Istanbul Consultant, Trainer –Sabanci University Executive Development Unit –High Performance Consulting –Sales, Marketing, Strategy

4. 95 50 Ugur Ergun Trend 1 Polarization –Of market

5. 95 50 Ugur Ergun Impact Low End –Standard products –Low cost –Require best operational efficiency High End –Superior products, services –High value –Require innovation and excellent service

6. 95 50 Ugur Ergun Trend 2 Disintermediation –No value add, no future

7. 95 50 Ugur Ergun Impact Low End –Reach through internet, mobile, call center –Cost cutting pressure –Intermediaries providing just reach may disappear –Only high value adders will survive >Financial Planners, Advisors High End –Demand sophisticated, personalized service –Demand intermediary providing excellent service

8. 95 50 Ugur Ergun Trend 3 Data mining –Risk selection

9. 95 50 Ugur Ergun Impact Better risk selection Better fraud prevention Lower costs Competitive advantage

10. 95 50 Ugur Ergun Trend 4 Specialization –No more General Insurance Company

11. 95 50 Ugur Ergun Impact Economies of Scale Alignment to customer needs Innovation

12. 95 50 Ugur Ergun Trend 5 Globalization –Was one way street –Now two ways

13. 95 50 Ugur Ergun Impact Two core competencies for Insurance Industry Software/IT skills Back office operations efficiency India has competitive advantage India may dominate the market

14. 95 50 Ugur Ergun Future Insurance Company 1 High End European Innovative Excellent service provider Represent 1/4 to 1/3 of the market

15. 95 50 Ugur Ergun Future Insurance Company 2 Low End Emerging Market/Indian –With European subsidiaries Efficient Excellent IT and operation skills Represents 2/3 to 3/4 of the market

16. Thank You Ugur Ergun Ugur@ugurergun.com 95 50 HIGH PERFORMANCE