Page 35 - Turkinsurance Digital Magazine

35

How do you evaluate the role of brokers in insurance pene- They have a 73% market share in credit
tration in Türkiye? How would you comment when compared
to other countries? insurance, 80% in marine and aviation
insurance, 40% in liability insurance,
Looking back from when I started my career in brokerage in and 35% in industrial and commercial
1999 to today, I must say that the insurance and reinsurance bro-
kerage sector in our country has undergone a significant trans- property insurance.
formation. In the early 2000s, brokers accounted for around 5%
of the market with approximately 25 brokerage firms; today, we like Italy and Spain, however, agents still have a larger share
have over 220 intermediary institutions. As of 2024, we hold a than brokers.
structure that constitutes approximately 18% of premium pro-
duction in non-life branches in Türkiye.
Cultural factors and business practices—just as in other in-
dustries—play a significant role in the final consumer’s deci-
In which lines of business are brokers stronger in Türkiye?
sion-making in the brokerage field as well. This is especially true
for individual policies. However, as purchasing habits change,
This ratio increases significantly in more technical and complex digital-native consumers emerge, and more purchases are made
lines such as marine, health, energy, construction, transporta- online, the share of brokers is increasing worldwide.
tion, and cyber risks. Brokers have a much higher market share
especially in corporate business. For example, in credit insur- Are there any steps that can be taken to increase the current
ance, brokers hold a 73% market share; in marine and aviation strength and production capacity of brokers?
insurance, 80%; and in liability insurance, 40%. In industrial
and commercial property insurance in our country, brokers ac- The brokerage profession itself is also undergoing a transfor-
count for approximately 35% of the market share. So, it would mation. In the coming years, brokers will function more as risk
not be wrong to say that one out of every three industrial and analysts, data interpreters, and financial advisors. Thanks to ar-
commercial enterprises works with a broker. In reinsurance tificial intelligence and big data, risks can now be analyzed more
transactions, the brokerage rate exceeds 70%.
accurately, and pricing can be made more precisely.

Brokers hold an 18% share in premium Therefore, brokers will make greater use of technology; howev-
production in non-life branches. er, the human factor will never be eliminated. Because the con-
cept of risk is not just about numbers—human-centered elements
such as cultural factors, management approach, and the compa-
The brokerage sector is directly involved in guiding an annual ny’s way of doing business also matter. Truly understanding the
insurance production of approximately TRY 150 billion. This customer’s needs and offering tailored solutions will continue to
volume is a clear indicator of the sector’s specialization and the be the core expertise of brokers. This is, in fact, what fundamen-
trust it has earned.
tally distinguishes brokers from other sales channels.
Where do you see the Turkish brokerage sector in interna- How will digitalization and artificial intelligence shape the
tional comparisons?
future of brokerage?
Across the world, we observe varying ratios depending on cul- Digital transformation is one of the key issues here. Intermediar-
tural contexts. In countries like the UK and the US, the market ies—whether agents or brokers—who cannot undergo this trans-
is predominantly broker-driven. In the UAE, Thailand, and Aus- formation or adapt to it will fall behind in terms of market share.
tralia, brokers hold over 50% of the market share. In countries