26.05.2022 Ankara
Speaking at the Distribution Channels Panel, which was held online as part of the Insurance Week and moderated by journalist Noyan Doğan, the Union of Chambers and Commodity Exchanges of Turkey (TOBB) President M. Rifat Hisarcıklıoğlu said, “It is of vital importance for our country's economy to finance new investments and protect existing investments. Because our capital accumulation is not enough to finance new investments. At this point, the insurance and private pension system comes into play.”
The opening speeches of
the panel, which evaluated the problems, demands and development opportunities
of the distribution channels and aimed to shed light on the future planning of
the sector, were made by Hisarcıklıoğlu as well as Atilla Benli, President of
the Insurance Association of Turkey (TSB) and V. Ali Ersoy, President of the
Insurance and Private Pension Regulation and Supervision Agency (SEDDK).
TOBB President M. Rifat
Hisarcıklıoğlu, in his speech, reminded that the Turkey International Insurance
Summit was held by the TSB at the beginning of the week, and said, “A very
auspicious work was also accomplished in this Summit. A memorandum of
understanding was signed with the Insurance Associations of Azerbaijan,
Kazakhstan, Kyrgyzstan and Uzbekistan for the establishment of a ‘Regional
Insurance Council.’ I congratulate the President of the Insurance Association
of Turkey, Mr. Atilla Benli, and his colleagues for this successful
organization.”
Hisarcıklıoğlu
mentioned that there was an important development in the insurance sector 2
years ago and reminded that the Insurance and Private Pension Regulation and
Supervision Agency started its activities. The TOBB President said, “Although
it coincided with the pandemic period, it completed its institutional
structuring very quickly. By taking accurate and courageous decisions on the
protection of the rights and interests of citizens, our country has carried out
successful works for the development of the insurance sector. I would also like
to express my gratitude to the Board Members and the employees of the
Institution in the person of Mr. Ali Ersoy, Deputy Chairman, for all these
valuable works.”
- “We should increase
agency effectiveness in PPS and life insurance as soon as possible”
TOBB President M. Rifat
Hisarcıklıoğlu said: “The size of funds in the Private Pension System has
exceeded 244 billion TL. This is a significant achievement of the public and
private pension companies. In 2021, premium production in the non-life branch
amounted to 87.5 billion liras. Approximately 70% of this production was
carried out by agents and brokers. In the life branch, premium production was
17.7 billion liras. However, this figure is far below its potential. Only 11%
of this production was carried out by our agents. In Germany, the share of
insurance agents in life insurance is around 50%. Therefore, for the
development of life insurance in our country, we must channel insurance
agencies into this area as well. We should increase agency effectiveness in PPS
and life insurance as soon as possible. The share of agencies in the production
of traffic and automobile insurance, which is the most widely used insurance
product in our country, is over 80%. The share of agents in Fire Insurances is
over 40% and in health and transportation insurances is over 50%. So, how do
agents capture these production rates? Because agencies are the most widespread
distribution channel geographically and numerically. Because agencies offer
insurance products that best suit the needs of their customers. Because
agencies inform their customers fully and accurately. It offers 24/7 service to
its customers. In addition, the contribution of insurance agencies to insurance
companies is also huge. Agencies ensure geographical diversity in the insurance
market, delivering insurance policies to all socio-economic groups of society.
For all these reasons, we must support insurance agencies, which are of great
importance in ensuring the development and continuity of our country's
insurance.”
- We
should develop alternative sales methods, not alternative sales channels
Pointing out that there
is a misunderstood concept in the sector, Hisarcıklıoğlu reminded that, “We
need to develop alternative sales channels to grow the market. Distribution
channels are clear in the Insurance Law. There is no need for another
distribution channel. We need to develop alternative sales methods, new
business models, not alternative sales channels, but through our existing
agencies.
Digitalization should
be used for the development of existing sales channels. Unfair competition and
practices between agents and brokers should be prevented and cooperation
opportunities should be developed in special projects in these professional
groups. Agencies should be provided with the opportunity to benefit from
developing technologies in marketing and management processes.”
- For the development
of our agencies, they also need to be supported financially
Hisarcıklıoğlu
explained that as TOBB, in cooperation with the Insurance Association of
Turkey, they are preparing a new training program in order to increase the
professional knowledge and competence of the agencies, and said, “A comprehensive
training will be given online in cooperation with TOBB University of Economics
and Technology and the Turkish Insurance Institute Foundation. This training
will be open to all agency officials and employees who desire to be registered
on the ledger. As TOBB and TSB, we will meet a very large part of the education
budget. As TOBB, we say the best investment is the investment in education. For
the development and institutionalization of our agencies, they also need to be
supported financially. Agencies in every province I visit ask what our traffic
commissions? That call, which we made at last year's meeting, was partially
answered. Agent commissions on pool policies have been increased. We thank you
for your positive approach in this regard. However, it is not enough. For all
vehicles in traffic insurance, the agency commission should be increased.
Recently, there have
been important developments for our country's insurance. The Regulation on the
Sale of Distance Insurances, which caused controversy in the sector, was
abolished. A new Regulation has been published. Fortunately, the concerns of
our agents here have been addressed. General Conditions of Traffic Insurance
were revised. Traffic Insurance transaction fee and coverage limits have been increased.
The state contribution in the PPS was increased to 30%. Insurance Fair was held
for the first time in our country. It was a very successful event in terms of
the number of participants and the effectiveness of the program. The Executive
Committee of Insurance Agencies of our Association also played an active role
in all of these processes. Especially in the completion of the Insurance Fair
in such a beautiful way, our Executive Committee has contributed a lot. I, who
was instrumental in organizing this fair; I would like to express my gratitude
to our Executive Committee Chairman Levent, our Executive Committee Vice
President who is the organizer of the fair, and also to our Antalya CCI Council
President Mr. Süleyman, TOBB-SAİK members and our Sector Council. I hope that
this fair will become traditional and carry our country's insurance sector to
further points.”