Page 11 - Turkinsurance Digital Magazine

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Insurance companies have undertaken 15.6 billion TL compensations in 6 months

Technical and financial results of Turkish insurance market for ance segment has reached a premium production of 22.8 billion
the second quarter of 2018 was announced according to the data TL, growing by 15.2 percent – excluding the indirect premiums
compiled from member companies by the Insurance Association from the risky insurance pool which cause duplicity. Thus, total
of Turkey. At the end of the second quarter of 2018, the amount premium production increased up to 26.6 billion TL, by 15.4
of compensations paid by the market reached 15.6 billion TL, percent over the same period of last year. The fact that credit
increasing from 13.3 billion TL by 17.1 percent over the same volume became stagnant restricted the growth in life insurance.
period of last year. Number of policies increased by 11 percent Before, growth in credit volume was the main driving force of
and reached 37.5 million, compared to 33.8 million policies last high growth rates in life insurance. Share of 7 companies op-
year. erating in the participation insurance segment stood at 3.4 per-
cent, reaching 940 million TL in size.
At the end of the second quarter of 2018, insurance market main-
tained its growth during the first six months of the year, in par- Total asset size of insurance, reinsurance and pension companies
allel with the national economy which grew by 5.2 percent over reached 164.8 billion, up by 19.4 percent over the same period
the same period of of last year; while total amount of shareholders’ equity reached
last year. In this 21.2 billion TL. As of 5 October 2018, number of participants
respect, total pre- in the Individual Pension System reached 7 million, and fund size
mium production in reached 85.9 billion TL (including state subsidy funds). 5 million
life insurance grew of participants who joined the system via auto-enrollment which
by 16.3 percent, was launched in 2017 have continued their contracts, bringing
reaching 3.8 billion the size of auto-enrollment funds up to 3.9 billion TL.
TL. Non-life insur-

Quick Sigorta supports the real economy

Quick Sigorta has started selling bond insurance to substitute world, despite being imple-
for letters of guarantee by banks and play a significant role in mented in a narrow field;
addressing the collateral requirements of the real economy. Ah- and addressed a significant
met Yaşar, General Manager of Quick Sigorta stated: “We have requirement. Customers
accelerated our activities, which were being carried out in the can contact kefalet@quick-
pilot phase for some time, towards offering the private sector a sigorta.com for detailed
significant instrument with the aim of addressing the collater- information on our high-de-
al requirements of the private sector in public tender processes, mand product. We have
paving the way for credit limits which are currently allocated also started our initiatives
for letters of guarantee to be used in the fundamental areas of with the regulatory authori-
requirement, and disburdening the real economy. As a first in ties towards addressing the
Turkey, while participating in tenders, companies are now able requirements of customs
to offer fidelity bonds issued within the scope of Quick Sigorta’s brokers.
Bond Insurance instead of letters of guarantee.”
Levent Uluçeçen, CEO of
The amendment on Public Procurement Law no 4734, which Quick Sigorta, added as follows: “Letters of guarantee account
was published on the Official Gazette as of 5 December 2017, for 75 percent of non-cash loans issued by banks; and 100 per-
allowed companies to use fidelity bonds issued as a part of bond cent of letters of guarantee are issued by banks. On the contrary,
insurance bought from insurance companies operating in Tur- they are completely issued by insurance companies in USA. This
key instead of letters of guarantee by banks while applying to rate is 50 percent in the Asia Pacific region, and 25 percent in
tenders. Within the scope of this amendment, Quick Sigorta had Europe. Since the beginning of our operations, we have consid-
initiated a pilot phase for issuing Temporary Fidelity Bonds to be ered the requirements of our country and the economic system,
used in Public Tenders as a first in Turkey. and provided supply for demands.” Stating that they are happy
to initiate firsts in the market, Levent Uluçeçen said: “Our teams
Ahmet Yaşar, General Manager of Quick Sigorta, say that they are working on new products that are longed for and can address
have received high demand for Bond Insurance: “Our colleagues requirements in many fields. As a young company, I am really
were working on the product for nearly 6 months. These studies pleased with our brand recognition and the number of policies
have already attracted a great deal of attention from the business we have issued so far.”