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Tourism crisis and coup attempt hit unemployment
Government's plans for our sector in 2017
Demir Hayat now owned by EMF New Europe Insurance Fund
Government rethinking their plans for mandatory private pensions
Nothing's certain except death and taxes
Staggered start to Automatic Enrollment
BES pension funds now as popular an investment as term bank deposits
Takaful insurance trade association formed
Treasury reminds employers of their responsibilities under Automatic Enrollment
Circulatory system disease and cancer the biggest killers in Turkey
Untitled Document population premium waiver Aegon 2012 death 2023 Katılım Hayat ve Emeklilik health Islamic finance Asya Emeklilik
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Change to calculation of blocked assets


Changes to the calculation of the “teminat” – blocked assets - for life branch made by the Treasury at the end of April mean more security for policyholders in the Life Branch.    

Sectoral Announcement number 2010/16, issued on 30 April, requires an additonal blocking of assets to cover outstanding premium reserves for one year policies issued in the life branch (pure life policies, or life policies with riders).

Insurance companies hold reserves to back the promises they have given to policyholders. The more money an insurance company has to cover its reserves, the stronger and more financially secure it is. 

I'm One in (nearly) Two Million


Figures from the Association of Turkish Insurance and Reinsurance Companies published for the end of 2009 show an astoundingly small number of people insured in the health branch.

We have known for years that, although Turkey has one of the largest population's in Europe (at 72 million), it also has one of the lowest penetration rates of insurance coverage.

Only 13 million life insurance policy holders, and 9,6 million accident policy holders is a bad enough figure, particularly when you take into account that although multiple policies with one insurance company are only counted as one life-insured, there is a considerable amount of double-counting between insurance companies, since one citizen may have policies with more than one company.

Pity the Poor Policyholder


One of the disturbing trends in Turkish life insurance of recent years is the upwards pressure on commission rates. As the market has rapidly transformed itself from agency driven to an almost exclusively bancassurance-dominated life market, the banks have discovered a new income stream in an age of falling interest rates: life insurance commission.

In fact, since insurance companies without a bank in their group have begun falling over each other to sign exclusivity agreements, the few independent banks are able to almost dictate their commission terms. I was recently speaking to a general manager of an insurance company who was worried that his group bank was even considering very tempting competitve offers they were receiving from other insurance companies.

Ethical Turkish Actuaries


At its Annual General Meeting last month the Turkish Actuarial Association amended its byelaws. Members also voted unanimously to accept a set of Ethical Standards.

Designed to regulate the way members of the profession carry out their professional duties, these ethical standards reflect the high level of responsibility carried by actuaries. Actuaries are trusted by governments, public and private financial institutions, their employers, their clients and customers, and the general public. In carrying out their professional obligations they aim to reach the highest professional standards, to justify the faith put in them, and to protect the reputation of the profession.

HAYMER to start collecting statistics


HAYMER is widening its sphere of activity to include, from this month, collecting up-to-date statistics from insurance companies. These statistics will be published on its website.

Pensions industry statistics have been published by the EGM ever since the BES system was introduced. The life insurance industry has lagged behind, with the only source of statistics being premium production figures published a few months in arrears by Sigortacý newspaper and The Association of Insurance and Reinsurance Companies of Turkey. The former statistics are more up-to-date but, because not all insurance companies contribute to Sigortacý's survey, they involve some estimates.

Life Insurance Statistics - Haymer Guidelines for Completion of Tables


	Translation © Marion James, www.turkeyinsurance.info  

The relevant tables will be sent by insurance companies to haymer@sbm.org.tr  each month by the 20th (or the next working day if the 20th is a statutory holiday).The tables sent by companies will be used to calculate sectoral statistics that will be publisher on the http://www.haymer.org.tr/ website.

Rider premiums: Premiums for riders will be included in the premium for the relevant product.

Life Branch Production for 2009: 1,82 trillion TL.


The Association of Insurance and Reinsurance Companies of Turkey has released production figures for 2009. Key highlights in the life branch are:

- Total production was 1,821,653,339 TL

- 2009 life branch production was 15.57% higher than 2008

- Aviva SA dropped out of the Top 3 in 2009, finishing in 4th place in the life branch. It was replaced by Groupama Emeklilik, which made 2nd place.

- Cardif Hayat increased production by nearly 300%. CiV Hayat increased by over 100%.

Over 2m Turks have a Personal Pension: Success?


Statistics issued by the Pensions Monitoring Centre show the number of participants in the BES pension system in Turkey has risen to 2.003.695 at 29 January 2010.  With the number of participants passing 2 million, I don’t want to rain on anyone’s parade. But even if we exclude the vast number of under 25s in Turkey’s population of nearly 70 million, this is a very low penetration rate. There is clearly a lot of work still to be done by the insurance sector to roll out the benefits of owning a pension plan to a wider audience.  

A striking graph in the Pensions Monitoring Centre’s Annual Report for 2008, demonstrates the penetration rates by age. There is no clear difference between rates for men and women – the graph is fairly symmetrical. The dark blue and dark pink lines (representing those who have a BES plan) are clearly a “drop in the ocean” when compared with the vast light blue and light pink areas (those who do not).

Anadolu Hayat Returns to the Top of the Life Leader Board


Figures Published by the Association of Turkish Insurance and Resinsurance Companies for the end of August 2009 show that Anadolu Hayat Emeklilik has returned to the leader position in the life branch. With premium production of 305,7 million TL, the giant which is part of the same group as Türkiye İş Bankası, has regained the No 1 position that it held throughout most of the last two decades. With a market share of 24,6%, it leads its nearest rival Baþak Groupama Emeklilik (who led the life market share tables earlier in 2009) by 3 percentage points.

The top 3 companies in the Life Branch for the 8 months to August 2009, measured by premium production were:

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