Page 11 - Turkinsurance Digital Magazine

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Millî Re will continue to

provide added value to

support the development of

our market and maintain the

contemporary service level

during the new term

Fikret Utku Özdemir, General Manager of Milli Re: “Thanks to
our strong capital structure, technical know-how, experienced staff

and a profit-oriented risk management approach, our company
has managed to reinforce its leadership position and market share
of treaty reinsurance and facultative placements in local market,

while successfully continuing its activities in international markets,
in line with our sustainable growth targets”

What have the global and national reinsur- premium production, its pressure on profitabili-
ance market gone through since the begin- ty, in addition to the natural catastrophes of re-
ning of 2020? cent years and repressed premium volume due to
the economic stagnation and quarantine effects.
After 2018 when we witnessed the pressure of
rising geopolitical tension in our region in addi- Although there are no problems in terms of ca-
tion to the changes in the main balance of global pacity supply, 2021 renewal negotiations will be
economy, commerce wars and slowdown in glob- shaped around discussions related to escalating
al growth, and 2019 when we all tried to recover prices due to increased frequency and amounts
from those impacts; a growth was relatively ex- of loss, as well as cyber risk and pandemic ex-
pected for our economy based on the rapid re- clusion clauses.
covery in the beginning of 2020. However, all
dynamics have changed since March due to the Pandemic losses are expected to have minimal
pandemic, which has impacted every aspect of impacts on Turkish reinsurance market. Moreo-
our lives, particularly health and economy, and ver, thanks to its structural strength, dynamism,
deeply shifted consumer habits and working con- and developed digital infrastructure, insurance
ditions. market of our country has had a better perfor-
mance compared to other markets despite the
In terms of our company’s overall traditional pandemic circumstances. Following a few diffi-
portfolio structure, we estimate no significant cult months, the insurance market has reported
impacts on our company due to the damage cre- a real growth of 9.6% at the end of the third
ated by this pandemic. On the other hand, high quarter; while reporting 6 billion 480 million TL
amounts of claims are expected to be paid in total technical profit in life, non-life and pension
more developed markets as they provide rein- segments and 5 billion 736 million TL account-
surance for products such as event cancellation ing profit during the first half.
insurance, advance loss of profit excluding ma-
terial damages, and other similar sophisticat- What have been the impacts of pandemic and
ed insurance products. Based on the data from increasing loss compensation ratios on rein-
companies that reported their Covid-19 pandem- surance?
ic related losses, total Covid-19 losses in global
insurance and reinsurance market has reached In terms of insurance lines for which our compa-
25.4 billion USD as of November. ny provides reinsurance coverage, we do not have
any significant responsibilities regarding pan-
A more disciplined pricing environment is inevi- demic related losses. However, on a global scale,
table considering the impacts of the pandemic on many reinsurers are facing significant amounts