Page 15 - Turkinsurance Digital Magazine

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example, in the first half of 2022, the technical profit in non- What would you say if you made a general assessment of the
life branches was 281 million TL, while the technical loss in the insurance sector in our country? What are our strengths in
traffic branch alone amounted to 5.8 billion TL. When excluding this regard, and what areas do you think can improve?
investment income, it is seen that the loss has increased to approx-
imately TL 7.9 billion. As I have just mentioned, in the insurance sector, we come in
second place after banking in terms of size in the financial indus-
Despite the 102% increase in investment income, the damage pre- try. As of the first half of 2022, our total asset size has reached
mium rate of 100.6% in the first half of 2021 was 178.7% in the 534 billion liras. As of July, our premium production exceeded
first half of 2022; the compound rate was 231%. This means that 107 billion liras. Similarly, our fund size in the private pension
for every TL 100 premium our companies pay, they have TL 231 system reached 340 billion liras in August. These data are essen-
expenses, including damage payments, compensation provisions, tial in showing the size our sector has reached. In the insurance
brokerage commissions, and overhead fees. Therefore, with the and pension sector, we provide security to our citizens with the
premium level in the tariff, the loss burden from the past and the services we provide; we stand by them in case of damage. Our
current costs are at the point where they can no longer be met. Re- Private Pension System enables our citizens to make the best
cently, with the regulation made by SEDDK in the tariff, insurance use of their savings to live a more prosperous life during their
companies have been allowed to breathe a little. retirement periods.

However, as TSB, we focus on different medium- and long-term On the other hand, we can say that the awareness of insurance
solution proposals, from pricing to cost-affecting factors, to place in our country and the insurance rate is relatively low. However,
the cost in a predictable and sustainable framework in the long this situation shows that the insurable potential is also relatively
term. high. We will continue working with our regulatory authorities
and all sector stakeholders to realize this potential.

“While the share of pension investment When we evaluate the areas that can develop in our sector; for
funds in GDP in OECD countries is at example, when we look at the auto branches that have a predom-
the level of 100%, in our country, this inant share in the industry, with good practice examples abroad
such as the Direct Compensation System, the Person-Based Pol-
level is around 3.5%.” icy Arrangement System, and telematics, it will be possible to
develop unique products for the insured and increase the product
These are; variety.
However, the effect of industrialization since the 1800s, espe-
• Controlling costs by increasing the use of equivalent parts and cially the use of fuels such as coal, oil, and gas is one factor
disciplining the loss of value that triggers climate change. When the impact of climate change
on the insurance sector is examined, two titles stand out: The
• Pricing differentiation and increasing customer satisfaction insurance rate and coverage. When we evaluate the effects of
by distinguishing between good and bad drivers with the Per- natural disasters on insurable risks, it is seen that less than 5%
son-Based Policy Issuance System of the damage caused in developing countries is covered by in-
surance, while this rate is at 50% in developed countries. This
• Complete abolition of the ceiling tariff and Risky Insured Pool data reveals that the insurance rate needs to be improved and
applications on an expected date to be determined by the SEDDK, the inclusiveness of coverages. In this context, we believe that
• Removing the product in question from the price focus with the the maturation of the work to include flood and landslide risks
Direct Compensation System within the scope of coverage by expanding the range of TCIP
insurance within the body of the Natural Disasters Insurance In-
As TSB, we continue our work by taking the necessary initiatives stitution by the end of this year and the conversion of compulsory
before our relevant institutions and closely monitoring the results. earthquake insurance to compulsory natural disasters insurance
How do you interpret the awareness of insurance? Does the Union in the coming year will make a significant contribution to both
have any studies and suggestions for development in this area? the prevalence and the inclusiveness of the coverage offered.

The first examples of insurance date back to the first civilizations On the other hand, the rapidly increasing volume of e-commerce
in Anatolia and Mesopotamia, the Ancient Greek and Roman civi- and the widespread digitalization have led to the diversification
lizations. Despite this deep-rooted history, we must recognize that and increase of cyber dangers that may cause devastating dam-
insurance should go some distance at the level of consciousness. ages, perhaps as devastating as natural disasters. As a result, the
The “Economic Impact Analysis of the Insurance Sector in Tur- need for insurance protection and assurance against cyber risks
key” that we have prepared with Boğaziçi University, which I have is proliferating. Taking this need into account, we have start-
just mentioned, is just one of the studies we have done to improve ed the process of preparing the general conditions of cyber risk
this awareness. insurance to determine the coverage and content of cyber risk
insurance and to ensure its awareness. By making a significant
Unfortunately, the value of insurance in our country is understood contribution to our sector by publishing the prepared general
when something happens to us when we need it. It is incumbent on conditions, we will present this product, which is very new world-
all of us to bring this awareness to the level it deserves, from our wide, to meet our insured’s needs.
state to our sector to our citizens.