Page 13 - Turkinsurance Digital Magazine

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TURKEY
2015 2017 2019
Natural catastrophes Macro-economy Technology
Macro-economy Political risk Climate change
Risk management Regulation Change management
Quality of management Change management Macro-economy
Long-term commitments/debts Quality of management Investment performance
Change management Technology Political risk
Regulation Risk management Regulation
Political risk Business practices Corporate governance
Cyber risk Capital availability Cyber risk
Terrorism Guaranteed products Credit risk
Reference: www.pwc.com.tr
Respondents from Turkey share the global concern for challeng- edness of insurance institutions to handle the risks they saw. On
es brought by the technological changes such as new business a scale of 1 (poorly) to 5 (well), they gave an average response
models, adaptation and data security. Considering that technol- of 3.11, an uptick from the 2017 survey’s 3.02. Respondents
ogy has increased from the 6th position in 2017 to number 1 from Turkey rated the preparedness of insurance institutions in
in 2019, those concerns are seen to be well-founded. Quality of Turkey as 3.35, which is higher than the global average. In other
the management and corporate governance are the first items to words, respondents from Turkey believe that Turkish insurance
come to mind when dealing with technological risks; and corpo- market is more prepared to face the risks compared to the global
rate governance is the 8th highest ranking risk for respondents respondents.
from Turkey. On the global scale, corporate governance ranks
19.
Significant differences between the global risk ranking and
Turkey is also observed to deviate from the global rankings con- risk ranking by Turkish respondents (Risks that are higher
sidering the credit risk, climate change and macro-economy. or lower in Turkey’s ranking compared to the global rank-
Though credit risk ranks 17th in the global ranking, according ing)
to the respondents from Turkey, it is the 10th highest risk.
• Corporate governance (+11)
Climate change, which ranks number 6 in the global list, is the • Credit risk (+7)
2nd most important risks according to the market representa- • Macro-economy (+5)
tives from Turkey. Macro-economy, which is the 9th most impor- • Political risk (+5)
tant risk on the global scale; is considerably higher for Turkey • Climate change (+5)
at the 4th rank. • Competition (-6)
• Cyber risk (-7)
Another important issue the report focuses on is the prepared- • Human talent (-8)
ness. The respondents of the survey were asked to rate the prepar-

Segments in which the companies of respondents
from Turkey operate

Life
7%
Other
19%
Brokering
15% Non-life
44%
Composite
11%

Reinsurance
4%

Rabia Kübra Kanun / kubrac@bestyayincilik.com