Page 15 - Turkinsurance Digital Magazine

15

by avoiding insurance premiums. As citizens, we have to take on this institution that tracks documents between insurance companies
cost again through taxes. If we take on this cost through insurance, and regulatory authorities. He stated, “Insurance is constantly on
we not only involve reinsurers and foreigners in sharing this risk but the agenda, risks are changing, and climate change is constantly
also create a budgetable and predictable situation.” evolving. Everything is changing. Insurance continues to exist in
some form, and we will strive to demonstrate our pioneering and
“Compulsory Disaster Insurance should cover all disasters.” visionary role towards this existence.”

Ahmet Yaşar referred to statements made by Mehmet Şimşek, “Our perspective is preventive insurance, damage compensa-
Minister of Treasury and Finance, regarding Compulsory Disaster tion, and fund creation.”
Insurance, saying:
Ahmet Yaşar emphasized Maher Holding’s focus on preventive
“After the Gölcük and Marmara earthquakes, the issue of DASK insurance, stating, “Insurance companies used to compensate for
came to our agenda, and it has been part of our lives since the legal damages after they occurred. We have highlighted the preventive
regulations implemented in 2000. Initially, earthquake insurance insurance function even more. Our job is already to compensate
was mandatory. Although the institution is named Natural Disaster insured losses after they occur, which is the easiest part of
Insurance, it has been focused on earthquake insurance and the job. Now, we are focusing more on how these losses can be
providing coverage for buildings up until now. Now, for example, prevented through preventive insurance functions before they
complaints occasionally arise, especially in the Black Sea region. occur. Additionally, as I mentioned earlier, insurers also have a
There, the risk of floods is greater compared to earthquake risks. role in fund management and fund creation. Therefore, we have
Therefore, it is said, ‘We have this mandatory insurance, but if our renewed our perspective to focus on preventive insurance, damage
house is flooded and we do not have optional home insurance, we compensation, and fund creation; we have made it more suitable for
cannot cover our damage.’ Taking these situations and increasing the modern age.”
natural disasters into account, some efforts had been initiated
towards transforming DASK into Compulsory Disaster Insurance. “The Turkish insurance sector is very advanced.”
These efforts have not been completed yet. The secondary legislation
has not been regulated yet. At the same time, after these regulations Ahmet Yaşar pointed out that in America, insurers are now using
are made and the law is passed, insurance companies also need to scores for drivers, stating, “In fact, the Turkish insurance sector is
position themselves accordingly. We have concerns about whether very advanced. Through initiatives starting with TRAMER (Traffic
this will be completed by July 1st. In addition, the relationships Insurance Information Center) and continuing as the Insurance
between the old DASK and the new Compulsory Disaster Insurance Information Center, we have been working for years to distinguish
need to be regulated. As the Insurance Association of Turkey and between good and bad drivers. One of the reasons we keep the
the insurance sector, we not only want earthquakes but also other liberal tariff system so prominent, especially in motor insurance,
natural disasters such as floods, landslides, avalanches, and hail is for that purpose. However, we sometimes face pressure from
to be included in the coverage. Therefore, we believe that this civil society organizations, particularly those representing driver
regulation will be beneficial, but we have some concerns about the associations. For example, there are insured individuals who
timing. Otherwise, it will be a good practice.” have been involved in accidents 13 times a year for the past 13
years. Therefore, they need to be eliminated from the system by
“Turkey Insurance Association’s agenda has five main topics.” not insuring them or improving their driving skills through good
driving education. However, the system stops you at a certain
Yaşar highlighted the longstanding and pioneering role of the point and actually allows good drivers to share the risks of these
Insurance Association of Turkey in the Turkish insurance sector, bad drivers in their premiums. We have a different perspective on
stating, “We held our general assembly on April 18, and under the this. I think they are introducing this practice in America as well.
leadership of Mr. Uğur Gülen, a new board of directors was formed. The Insurance Information Center is a unique and very important
There is a dual structure; there is a management committee dedicated structure that has no equivalent in the world. Therefore, because
to non-life insurance and another for life and pension insurance. they don’t have access to this information like we do, they want to
Their presidents and vice presidents, along with Mr. Uğur, form access it through various assumptions and scores. Our Insurance
the board of directors. We have identified five main topics. At Information Center’s work in this regard needs to be improved with
the forefront is, of course, the issue of earthquakes, which could some regulatory adjustments.”
pose a real existential threat. With the publication of the General
Conditions for Building Completion, we have prioritized urban “The increase in assets affected insurance premiums”
transformation and collectively addressing the earthquake issue.
Apart from earthquakes, education is a key topic on our agenda. Ahmet Yaşar also pointed out that insurance premiums have
Increasing insurance coverage is also among our main priorities, changed with the increase in assets, stating: “The premium prices
along with sustainability. Of course, for a long time, there has been in the sector did not increase significantly. Apart from the increase
a lot of focus on traffic insurance, which has taken up a significant in fire prices due to developments in reinsurance, the asset values
amount of insurers’ time. We are not pushing it completely into the of individuals and businesses actually increased. As investments
background, but it is not among these four main topics. However, increased, so did assets, and this resulted in higher premiums. The
we cannot ignore its importance.” asset values of businesses and individuals have increased. Both
due to the inflation effect and the exchange rate... Therefore, as
Ahmet Yaşar noted that in the coming period, the Insurance investments increase, so do assets. Even though our multiplier price
Association of Turkey will move away from being merely an remains unchanged, premiums are growing.”