1. AIIF 2015 Azerbaijan International Insurance Forum 2 – 3 July, 2015 “Current capacities and alternative markets for reinsurance - importance to adapt to worldwide practice” Menekşe Uçaroğlu IUC

2. Content 1.Presentation of IUC 2.Current capacities and alternative markets for reinsurance - importance to adapt to worldwide practice ” IUC

3. 1 - IUC is a management and Consultancy Services Group which operates in area of insurance business and is established to add quantifiable value to -Reinsurance & Insurance Broking -Claims Handling -Network & Product Services -Training Processes of Insurance Business -Loss Adjsuting We present our services via 5 different brand and company organisations. IUC is based in Istanbul, Turkey and has a representative office in Bakü, Azerbaijan and in Sofia, Bulgaria IUC Insurance & Reinsurance Broking

4. IUC REGIONAL CHARACTERISTICS OF INSURANCE MARKETS Low risk awareness Lack of corresponding risk management Low insurance penetration Soft market Strong competition between reinsurers Fierce competition among brokers Broadening of reinsurance terms and conditions Consolidation and centralisation of reinsurance Increase of retention levels by insurance companies *

5. IUC REGIONAL CHARACTERISTICS OF INSURANCE MARKETS People tend to repress bad experiences quite fast Tendency to believe: It won’t hit me Large return periods of Nat Cat events : Underestimation People have other priorities instead of buying insurance cover Economy is growing Insurance is rapidly developing Territory is exposed to natural perils A Major CAT event can give serious damage to insurance sector and its shareholder‘s capital

6. GENERAL OVERVIEW OF THE TURKISH INSURANCE MARKET ACHIEVEMENTS : BEFORE & AFTER 2000 IUC BEFORE 2000 NO ACTUARIAL STUDIES NO SEGMENTATION NO RESERVE ANALYSIS – TRIANGLES COMPULSORY TARIFF FOR MTPL BY GOVERNMENT NO FOCUS ON CLAIMS AUDITING NO FOCUS ON SUB-CONTRACTORS

7. GENERAL OVERVIEW OF THE TURKISH INSURANCE MARKET ACHIEVEMENTS : BEFORE & AFTER 2000 IUC AFTER 2000 SEGMENTATION STUDIES INTRODUCTION OF RESERVE ANALYSIS VIA TRIANGLES SET-UP OF NON-LIFE ACTUARIAL DEPARTMENTS FREE TARIFF FOR MTPL SET-UP OF CLAIMS AUDITING DEPARTMENTS SET-UP OF MOTOR LOGISTICS DEPARTMENTS FRAUDULENT CLAIMS COMMITTEE SET-UP OF TCIP FOR EARTHQUAKE SET-UP OF INSURANCE INFORMATION CENTER SET-UP OF TRAMER – CENTRAL MOTOR CLAIMS SYSTEM, SET-UP OF HATMER, SAGMER MONITORING SYSTEMS FOR HEALTH NEW SUB-CONTRACTORS FOR SALVAGE, CLAIMS HANDLING, GLASS REPAIR, FRAUD DETECTION, CAR REPAIR …… INSURANCE COMPANIES’ REPAIR SHOPS PROJECTS WITH INTERNATIONAL ACTUARIAL COMPANIES REGULAR AUDITS BY TREASURY

8. IUC. TO ACHIEVE A RESULT Government Insurance industry Individuals (insured) Strong commitment of all parties involved required!

9. IUC Opportunities in lines such as : Agriculture Engineering Liability ……..

10. IUC Risk Awareness must improve Risk Management must improve Claims Handling must improve Catastrophe Management must improve Usage of Technology must improve Technical Information must improve : segmentation, statistics, modelling,

11. IUC Reinsurance will help you to secure the development of your business Increase the Rates Create More Ties and Partnership with Regional Reinsurers Have a More Diversified Reinsurance Panel Diversify the Portfolio Branchwise And adapt to worldwide practice ………………..

12. THANK YOU IUC