| Telephone +44 (0)1444 450 919 |
| Welcome to our Monthly Newsletter – November 2007 |
|
|
|
An Established and Successful Force in International Insurance Worldwide Risk Solutions is a U.K. based commercial organisation which has the sole objective of facilitating global business strategies and business development in the international insurance industry. For more information about us, please go to www.worldwiderisksolutions.com. Since Our Last Newsletter As we mentioned in our October edition of WoRdS, September really has been a month for conferences. Besides Rendez-vous de Septembre, Baden Baden, FERMA had its conference and exhibition and we attended this. We also took part in the conferences of two major networks of independent brokers. Amongst the issues discussed was the necessity for continually up-dating the knowledge and awareness of skills and expertise available throughout the networks and utilising these for the good of mutual clients. Having a good website for the network’s visibility is a must. Having an extranet to move vital information around the world and service international business will make a difference. As we pen this missive, a number of broker networks are taking stock of their ability to perform effectively. Interesting times are ahead as they tweak their structures and organisational mechanisms. In our SPOTLIGHT series we will help you understand the way different markets around the world operate so that those of you who do business there can feel more “at home abroad.” Different does not need to mean difficult but knowledge of the needs and characteristics of specific geographic markets is an advantage to those who are active in the global economy. This helps avoid misunderstandings and unfulfilled expectations. We have now done articles on Brazil, Takaful, India and more; if you would like copies, please let us know. |
||
|
Turkey A Quick Glance at the Turkish Insurance Industry Positive economic developments, reforms accomplished during the EU harmonisation process and its young population make Turkey an attractive country for investment in the eyes of foreign investors. In an environment where international financial factors benefit from free movement, there has been a remarkable increase of foreign capital flowing into the Turkish insurance market, mostly as a result of mergers and acquisitions. The fact that foreign investors are at the same time insurers in their countries of origin will have a positive competitive impact in the Turkish market. A healthy competitive environment will be made possible by the formation and implementation of recent insurance legislation providing for free competition and at the same time regulating the financial structures of international companies. The long awaited Turkish Insurance Law has been discussed in the Turkish Parliament and was approved on 3rd June 2007, thereby filling the legal and regulatory gaps in the Turkish insurance sector - a very significant development. As of 31st December 2006 there are 53 insurance companies and two reinsurance companies registered with the Association. In addition to these companies Coface Sigorta A.S. has been also been established and, indeed, other international carriers are moving into the market.
Premium Income In 2006, thanks to the improvement of the technology infrastructure, the service quality of insurance companies and to the increases in the number of trained employees, total Premium of the insurance companies operating in Turkey increased by 23.68 % when compared to 2005 and reached TRY 9.7 billion (US$ 6.8 billion). About 85% of this premium was generated in the non-life branches, with the remaining 15% being derived from life insurance.
A year without major losses 2006 can be described as a year without any major losses for the Turkish insurance industry. However, the non-technical price competition which has been ongoing for years prevented premium growth reaching its full potential, this also led insurance companies to sustain losses, particularly in motor own damage and health branches. Statistics currently being compiled for 2007 show little difference.
Foreign capital investments Starting with 2005, the appetite of foreign direct investment for the Turkish insurance market showed a progressive trend during 2006 and 2007. During the course of 2006, majority of shares in Basak Sigorta and Basak Emeklilik were sold to Groupama and İhlâs Sigorta was acquired by HDI International, now known as HDI-Gerling. In preparing this Spotlight article we received invaluable assistance from the leading independent risk advisers Martin & Martin Insurance and Reinsurance Brokers Co Inc in Istanbul (www.mmsb.com.tr) for which we are grateful. If you would like Worldwide Risk Solutions to conduct an economic, business and insurance survey of any international markets please contact us – Details below. Worldwide Risk Solutions has access to a wide client base of internationally oriented organisations. Why not utilise this knowledge and experience? We can conduct a swift appraisal of your global activities or answer any questions you may have about international developments. Call +44 (0)1444 450 919 or send us an e-mail and we will respond immediately. In our next e-newsletter we will feature a Spotlight on Taxation Issues. In these days of Compliance, Financial Service Authorities, Transparency, Scapegoats, etc, Insurance Premium Tax is coming under scrutiny. Insurance companies usually handle this in the country where the premiums are paid. But, especially with non-admitted policies, it is no longer as easy as it used to be for a carrier to pass all responsibility onto clients. Progress is sketchy and we will update you on developments in our next edition of WoRdS.See our Contact Details George Worsley, Director |
||
| © Worldwide Risk Solutions LLP 2007 | ||
