1. Insurance & Reinsurance Brokers and Information about Brokerage Profession

2. History of broker inTurkey The first regulation about Insurance and Reinsurance Brokers was issued in 1995. Current regulation was brought into force in 2008.

3. Number of Brokers? The number of Insurance and Reinsurance Brokers operate in Turkey 2006-56 2007-60 2008-65 2009-72 2010-78 2011-present-81 Annual growth rate: Approximately %10

4. Market share of Brokers? The market share of Insurance and Reinsurance Brokers operate in Turkey NON-LIFE 2006- 9,2% 2007- 9,7% 2008- 10,5% 2009- 11,3% 2010- 10,8% 2011-first 3 months- 12, 1%

5. Market share of Brokers? The market share of Insurance and Reinsurance Brokers operate in Turkey LIFE 2006-0,9% 2007- 0,9% 2008-0,7% 2009-0,9% 2010-0,8% 2011-first 3 months-0,7%

6. Type and Number of Licences? Licences of Insurance and Reinsurance Brokers operate in Turkey To be in possession on only Non-Life Licence : 6 To be in possession on only Life Licence : 1 To be in possession on only Reinsurance Licence : 3 To be in possession on Life and Non-Life Licence : 8 To be in possession on Reinsurance and Non-Life Licence : 5 To be in possession on all Licences : 58

7. What is required to become a Broker? FINANCIAL COMPETENCE TECHNICAL COMPETENCE EXPERIENCE COMPETENCE

8. What is required to become a Broker? FINANCIAL COMPETENCE - MİN. 100.000 TL PAID-IN CAPITAL - ADDITIONAL 25.000 TL OF CAPITAL FOR EACH LICENCE - THE CAPITAL OF OPERATING BROKERS CAN NOT BE LESS THAN %10 OF THEIR TOTAL ANNUAL COMMISSION REVENUES

9. What is required to become a Broker? EXPERIENCE COMPETENCE - HIGH EXECUTIVE WHO HAS THE SIGNATURE AUTHORITY MUST HAVE A MİN 10 YEARS OF INSURANCE BACKGROUND. - OTHER EXECUTIVES MUST HAVE MİN 5 YEARS OF INSURANCE BACKGROUND.

10. What is required to become a Broker? TECHNICAL COMPETENCE - TECHNICAL REQUIREMENT IN WORK PLACE - SOFTWARE REQUIREMENTS - TO HAVE SUFFICIENT TECHNICAL PERSONNEL - TO HAVE A PROFESSIONAL INDEMNITY INSURANCE

11. What is required to become a Broker? TECHNICAL COMPETENCE - TECHNICAL PERSONNEL - FOR HIGH-SCHOOL GRADUATE: 5 YEAR INSURANCE EXPERIENCE - FOR ACADEMY GRADUATES (2 YEARS EDU.): 3 YEAR INSURANCE EXPERIENCE - FOR ACADEMY GRADUATES OF INSURANCE AND ACTUARY SCHOOLS (2 YEAR EDU.): 2 YEAR INSURANCE EXPERIENCE - FOR UNIVERSITY GRADUATES (4 YEAR EDU.): 1 YEAR INSURANCE EXPERIENCE

12. What is required to become a Broker? TECHNICAL COMPETENCE - PROFESSIONAL INDEMNITY POLICY : - LIMITS MUST BE : EACH OCCURENCE MİN. 200.000 TL AND IN AGGREGATE MİN. 1.000.000 TL

13. Brokers’ Obligations FINANCIAL OBLIGATIONS - Brokers who have authority to make payment collection per their agreemens with Insurance Companies, can only recieve these premium payments via dedicated customer accounts. - They can not generate any income other than Commission and consultancy&risk management fee from represented customers. - They can not pay any insurance claim or any advance payment related to that claim.

14. Association of Insurance Brokers Although the Association’s name only contains “Insurance” word, it actually represents both Insurance and Reinsurance Brokers. It is the only entity in Turkey which represents Brokerage Profession. was established in 1991 when “Insurance” was not legally defined as a profession in Turkey. In 2005, it was accepted into BIPAR (Europe Insurance Agent Federation), and currently it is the only entity representing Turkey in the Federation Now, it has 78 members.

15. Association of Insurance Brokers With the regulation came into force in 2008, General Directorate of Insurance gave the Association authority to; Control and complete the new licence applications Receive approval of new Technical Personnel Prepare notice of Technical Personnel cancelations Ensure data entry of year end financial information via Insurance Brokers Information System Notify any modications about current brokers and obtain necessary permissions Organize Technical Personnel Trainings Prepare Technical Personnel ID Cards To determine Technical Personnel competence criterias

16. Association of Insurance Brokers Mission To defend the common interests of the Insurance and Reinsurance Brokers Vision To be a pioneer of this area, having distinguished members producing high-quality services at the highest level of professional and ethical codes of practice leading to reference sources to be proud of the members of the association, build our vision.

17. Association of Insurance Brokers THANK YOU!!!!