Page 15 - Turkinsurance Digital Magazine
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We process minor damage payments within
72 hours
Selva Eren, General Manager of Türk Reasürans, stated, “When we took over
DASK, the existing fund size of 10.5 billion TL has increased to 23.5 billion TL in
2.5 years.”
Can you tell us about Turkey's reinsurance structure? What “We will complete our project to trans-
is the current state of the reinsurance market, which is the
guarantee of the strength of the insurance sector, in Turkey? form the Compulsory Earthquake Insur-
ance into Compulsory Disaster Insurance
Reinsurance refers to the process of reinsuring, through a new
agreement between the insurer and the reinsurer, the risks that by May.”
have been insured and covered by insurance companies in order market share in the Turkish reinsurance market to 49% with
to create additional security. Reinsurance can be defined as the an approximate gross premium production of around 4.3 billion
most specialized field within the insurance industry. In Turkey, a TRY on a consolidated basis. On the path we embarked on with
portion of the reinsurance needs are met by domestic reinsurance the goal of completing each fiscal year with a net profit, Türk
companies, while another portion is met by international rein- Reasürans achieved a net profit of 695 million TRY in 2022.
surance companies operating abroad. There are four reinsurance Compared to the same period of the previous year, we success-
companies operating in Turkey, one of which is our subsidiary, fully increased our technical result balance by 174% and our net
Türk Katılım Reasürans. profit by 219%, while maintaining a technical profitability rate
of 29.4% and a return on equity rate of 43.3%.
Globally, our industry has witnessed challenging periods due to
unforeseen risks and high damages, including the COVID-19 pan- We take great satisfaction in successfully completing many of
demic, inflation, climate crisis, natural disasters, and events such our projects in both the short and long term, following the course
as the Ukraine-Russia Crisis. These adversities in the industry we have set, and continue our efforts towards higher goals based
have also impacted insurance companies in Turkey throughout on global trends to address the specific needs of our country.
2022, leading to increases in claim premium ratios. In 2022,
where technical profitability was negatively affected, investment Considering that reinsurance is both an essential protection tool
income was able to offset this contraction. In light of these con- for our industry and a highly costly item, we recognize the im-
ditions, I anticipate that companies will focus on strengthening portance of providing the necessary capacity to companies to
their financial adequacy by implementing new policies, taking meet this need. With this sense of responsibility, we carry out
into account the issue of capital sufficiency. our work.
Since entering the Turkish reinsurance market as Türk We believe that the path to achieving successes that will add val-
Reasürans, what gains have you achieved for the sector and ue to our industry and make a difference lies in staying abreast of
the country? What contributions have you made to the devel- leading technological advancements, effective risk management,
opment of the Turkish insurance sector? and timely actions. Our software product ARU (Main Reinsur-
ance Application) and our catastrophic modeling product CAT-
In line with our organizational objectives, we have contributed to MOD, which we have developed using our own resources, encom-
the development of the domestic reinsurance capacity, prevent- pass all reinsurance activities from end to end. These products
ed the outflow of reinsurance premiums abroad, and provided will contribute to the development of our industry and open the
sustainable contributions to both the sector's development and doors to further success.
our country's economy. Our subsidiary, Türk Katılım Reasürans
Şirketi, which is Turkey's only participation reinsurance com- Furthermore, with this vision in mind, we have established our
pany, successfully completed its first year of operation on Sep- Technopark company T-RUPT to bring together the academic
tember 8, 2022. As Türk Reasürans, in 2022, we provided rein- knowledge and technological advancements of our industry in
surance coverage to 23 insurance companies and 5 institutions order to contribute to the economy and sustainable growth in
in the Turkish insurance market. Despite the significant impact the insurance and reinsurance sectors. We believe that our com-
on profitability in the non-life sector in 2022, we increased our pany, operating in Yıldız Technical University Technopark, will