Embed Size (px)
Citation preview
Aysun YILDIZ-OZERDeputy Secretary General
22 March 2018
Consumer Protection & Data Protection Regulations:
Challenges for a developing insurance industry
I. An overview of Turkish Insurance
Industry
II. Consumer Protection in Insurance
Regulation
III. Data Protection Act
Agenda
An Overview of the
Insurance Sector in
Turkey
Number of Insurance Companies: 63
Non-Life: 39
Pension and Life 22
Reinsurance: 2
4
Basic Indicators
Total Assets*:143,8 bln TL (40,5 bln USD)
Premium Production:
2016: 40,5 bln TL (11,5 bln USD)
2017 : 46,5 bln TL (13,1 bln USD )
14%
5
*2017/Q3
Basic Indicators
14,479 17,119
20,832 22,712 27,068
35,450 39,660
2,686
2,711
3,395 3,280
3,761
5,039
6,844
- 2,000 4,000 6,000 8,000
10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 28,000 30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 46,000 48,000 50,000
2011 2012 2013 2014 2015 2016 2017
Life
Non-life
6
million TL
%15,5 %14
CAGR
Premium Production (2011-2017)
7
Million USD
%5 %4
CAGR
Premium Production (2011-2017)
7,665
9,630 9,778 9,761 9,276
10,034 10,515
1,422
1,525 1,594 1,410
1,289
1,426
1,814
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2011 2012 2013 2014 2015 2016 2017
Life
Non-life
3rd Pillar
Total Funds in Private Pensions: 79,2 billion TL
21 bln USD
Number of Paticipants : 6,9 mln
8
Private Pension System
Auto-enrollment
Total Funds in Pension System : 2 bln TL (540 mln USD)
Number of Paticipants : 3,5 mln
Source: Pension Monitoring Center, 26 January 2017
2.7
1.4
4.0
0.2
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Europe Turkey
Non-life Life
6,7
1,6
2016 – Insurance Penetration Rate(%) 2016 – Insurance Density($)
658
144
962
21
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
Europe Turkey
Non-life Life
165
1.620
Source: Sigma No3/2017
9
Penetration & Density
Source: OECD 2017, Pension Markets in Focus
10
125,7
2.10
20
40
60
80
100
120
140
Weighted Average ofOECD
Turkey
Private Pension Funds/GDP(%) - 2016
2,6 trillion
87%123
billion
4%
Bankacılık Sektörü Sigorta SektörüBanking
Assets, 2016 Shares in the financial system
11
Insurance
Banking vs Insurance
Foreign Direct Investment (2017)
Banking39.8 billion $
Insurance7.9 billion $
Others3.4
Billion $
TOTAL51,1 billion USD
Source: TCMB, Balance of Payment Statistics, September 2017
12
Büyük Yatırım Projeleri
35 times of GDP, 90 trillion TL (25,5 trillion USD)
Providing Coverage for the Economy
13
Source: Undersecretariat of Treasury, Insurance and Private Pension Report 2016
2,4 billion TL
21 billion TL
Life
Non-life
23,4 billion TL
2 billion TL
18,5 billion TL
Life
Non-life
20,5 billion TL
2017/9 Incurred Loss2016 Incurred Loss
Payment for the the Losses
6,6 bln USD 5,8 bln USD
15
2016 2017 (September)
Insureds 74.000 40.000
Incurred Loss 1,1 Bln TL (0,32 bln USD) 800 MlnTL (0,22 bln USD)
In Credit Life Insurance;
Claims in Credit Life Insurance
16
Paid Claims
173 Million TL(48,7 mln USD)
2000-2017
4 Billion TL(1,13 bln USD)
2006-2017
Funds – bln TL (2017/Q3)
T-bills & Gov. Bonds
41,8 bln TL(11,8 bln USD)
Corporate Bonds10,8 billion TL(3,04 bln USD)
Capital Market23,1 billion TL(6,5 bln USD)
Bank Account39,8 billion TL(11,2 bln USD)
Others3,1 billion TL(0,9 bln USD)
Source: Takasbank – 30/09/2017, Balance sheet2017/Q3
118,6 Billion TL
(33,4 bln USD)
II. Consumer Protection in Insurance
Regulation
19
➢Consumer: relatively new in Turkish legislation
➢ 6502 CPA enacted in 2014
➢ Replaced earlier law encted in 2003
➢ 6502 has articles regulating & restraining insurance business
➢ It has brought extensive responsibilities to inform the policy
holders
Consumer Protection Act 6502
20
➢ Articles regulating credit linked insurance
➢ Written and overt consent of the credit holder is required
➢ Creditor shall not require insurance as a prerequisite
➢ Credit holder can choose the insurance company independent of
the credit instituiton
➢ Act has brought cumbersome disclosure procedures
- forms with many pages
- complicated and expensive: additional operational costs
Consumer Protection Act 6502
21
➢ Consumer Protection in Credit linked Insurance
➢Very specific and detailed regulation: not easy to comply with
➢Law not following the novel products in the market
Example:
The Act also stipulates: the amount of the sum insured must be equal to the
loan
not allowing to cover late payment fines for the credit
not able to offer additional covers linked with the credit product
Difficult to develop products with varying sum insured
Consumer Protection Act 6502
22
CPA not compatible with digital insurance
➢ Written/signed consent of the policy holder
➢ It does not allow digital means as a way of approval
equivalent to signature
➢ It also requires insurance companies to issue a printed
and signed copy of the policy
Consumer Protection Act 6502
Data Protection Act
Protection of Personal Data
➢ PPD was enacted in 2016
➢ An independent board is in charge of regulation
➢ Insurance companies demanded exemption from the regulation in terms of
- accessing personal health data
- keeping
- processing
- sharing with the trusted third parties
(Only on the condition that it is used for doing insurance, risk assesment and
underwriting purposes for health and group life insurance policies)
24
Last Word...
➢ Turkish market is dominated by MTPL and by agencies as the main
distribution channel
➢ Areas to expand: health (esp. complementary health) and life branches
➢ Digitalization is important to expand these business
➢ Consumer protection and data protection not allowing distance sales
➢ Hence these regulations restraining development potential
25
Last Word...
➢ Consumer Protection should protect policy holders; but should not restrict
the business
➢ PPD/Consumer protection regulations makes it hard for the business
➢ Personal data protection new in Turkey should adopt to the needs of the
developing insurance industry
➢ Association lobbying to explain the specific to be taken into account for
insurance market
26
