AIIF 2015Azerbaijan International Insurance Forum

2 – 3 July, 2015

“Current capacities and alternative markets for reinsurance - 

importance to adapt to worldwide practice”

Menekşe UçaroğluIUCIUC

Content

1.Presentation of IUC

2.Current capacities and alternative markets for reinsurance -  importance to adapt to worldwide practice”

IUC

1 - IUC is a management and Consultancy Services Groupwhich operates in area of insurance business and is established to add quantifiable value to

-Reinsurance & Insurance Broking

-Claims Handling

-Network & Product Services

-Training Processes of Insurance Business

-Loss Adjsuting

We present our services via 5 different brand and company organisations . IUC is based in Istanbul, Turkey and has a representative office in Bakü, Azerbaijan and in Sofia, Bulgaria

IUC

IUC Insurance & Reinsurance Broking

IUC

REGIONAL CHARACTERISTICS OF INSURANCE MARKETS •Low risk awareness

•Lack of corresponding risk management

•Low insurance penetration

•Soft market

•Strong competition between reinsurers

•Fierce competition among brokers

•Broadening of reinsurance terms and conditions

•Consolidation and centralisation of reinsurance

•Increase of retention levels by insurance companies

*

IUC

REGIONAL CHARACTERISTICS OF INSURANCE MARKETS

•People tend to repress bad experiences quite fast

• Tendency to believe: It won’t hit me

• Large return periods of Nat Cat events : Underestimation

•People have other priorities instead of buying insurance cover

•Economy is growing

•Insurance is rapidly developing

•Territory is exposed to natural perils A Major CAT event can give serious damage to insurance sector and its shareholder‘s capital

GENERAL OVERVIEW OF THE TURKISH INSURANCE MARKET

ACHIEVEMENTS : BEFORE & AFTER 2000

IUC

BEFORE 2000

•NO ACTUARIAL STUDIES•NO SEGMENTATION•NO RESERVE ANALYSIS – TRIANGLES•COMPULSORY TARIFF FOR MTPL BY GOVERNMENT•NO FOCUS ON CLAIMS AUDITING•NO FOCUS ON SUB-CONTRACTORS

GENERAL OVERVIEW OF THE TURKISH INSURANCE MARKET

ACHIEVEMENTS : BEFORE & AFTER 2000

IUC

AFTER 2000

•SEGMENTATION STUDIES •INTRODUCTION OF RESERVE ANALYSIS VIA TRIANGLES•SET-UP OF NON-LIFE ACTUARIAL DEPARTMENTS •FREE TARIFF FOR MTPL •SET-UP OF CLAIMS AUDITING DEPARTMENTS•SET-UP OF MOTOR LOGISTICS DEPARTMENTS•FRAUDULENT CLAIMS COMMITTEE•SET-UP OF TCIP FOR EARTHQUAKE•SET-UP OF INSURANCE INFORMATION CENTER•SET-UP OF TRAMER – CENTRAL MOTOR CLAIMS SYSTEM,•SET-UP OF HATMER, SAGMER MONITORING SYSTEMS FOR HEALTH •NEW SUB-CONTRACTORS FOR SALVAGE, CLAIMS HANDLING, GLASS REPAIR, FRAUD DETECTION, CAR REPAIR ……•INSURANCE COMPANIES’ REPAIR SHOPS•PROJECTS WITH INTERNATIONAL ACTUARIAL COMPANIES•REGULAR AUDITS BY TREASURY

IUC

.

• TO ACHIEVE A RESULT

• Government

• Insurance industry

• Individuals (insured)

• Strong commitment of all parties involved required!

IUC

• Opportunities in lines such as : Agriculture

Engineering

Liability ……..

IUC

•Risk Awareness must improve

•Risk Management must improve

•Claims Handling must improve

•Catastrophe Management must improve •Usage of Technology must improve

•Technical Information must improve : segmentation, statistics, modelling,

IUC

•Reinsurance will help you to secure the development of your business

•Increase the Rates

•Create More Ties and Partnership with Regional Reinsurers

•Have a More Diversified Reinsurance Panel

•Diversify the Portfolio Branchwise

•And adapt to worldwide practice ………………..

THANK YOU

IUC