Upload
erick-bishop
View
218
Download
2
Tags:
Embed Size (px)
Citation preview
The devastating Earthquake in Marmara on 17th August and 12th November 1999
An insured loss of around USD 800.000.000
An economic loss of around 6 billions of USD
In 20th century 111 earthquakes above 5.0 Richter scale
HISTORY
REGION
PRODUCES
ONE THIRD
OF
NATIONAL GDP
CENTER OF COMMERCE
HIGH DENSITY OF INDUSTRY
AGRICULTURALPROJECTS
CAPITAL CITY
SEISMIC HAZARD ZONES OF TURKEY
PRE-TCIP
WHY
Reactive solutions versus proactive solutions
Shortage of funds in immediate need
Allowance of funds to those in need is problematic
Political and bureaucratic considerations may prevail
Government priorities is on getting back to economic and social life
GOVERNMENT’S PRIORITIES
A compulsory earthquake insurance system for homeowners
Affordable price for every homeowner
True risk transfer mechanism
Claims-paying capacity to limit government’s exposure
Build national catastrophes reserves by time
improvement of risk culture and insurance consciousness in public
Rely on distribution channels of Turkish insurance industry
ESTABLISMENT OF TCIP
LEGAL AND FINANCIAL BASE OF TCIP
Financed by Marmara Earthquake Emergency Reconstruction Project co-financed by
World BankTurkish GovernmentEuropean Bank for Reconstruction and Development
Decree law no 587 – compulsory earthquake insurance as of 27th September 2000. Eureko Sigorta is tendered for the following 5 years till August, 2015
TCIPINSURERREINSURERSALES FUNCTIONSOPERATIONAL SERVICESRISK MANAGEMENT SUPPORTCLAIMS MANAGEMENT
HOUSEHOLDERSRISK MANAGEMENTBEHAVIOUR
AUTHORITIESREGULATION SUPERVISION
LEGAL FRAMEWORKRISK MANAGEMENT SUPPORT
DISASTER MANAGEMENT
PUBLIC-PRIVATE PARTNERSHIP
1.66
3.12
6
319.890
597.
554
95.172
2.04
5.66
2
516.837
757.
099
102.166
2.22
7.05
5
656.385
1.28
2.09
6
239.453
4.41
6.07
3
1.549.881
MED
ITER
RA
IN
EAST
AN
ATO
LIA
EAG
EN
SOU
TH E
AST
AN
ATO
LIA
CEN
TRA
LA
NA
TOLI
A
BLA
CK
SEA
MA
RM
AR
A
COMPULSORY EARTHQUAKE POLICIES (.000)
2.128 2.022 2.090
2.554 2.6182.844
3.4363.287
3.479
2.4172.428
159
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
PORTFOLIO
% 19,2
% 15,9
% 25,3
% 13,5
% 29,5
% 35,1
% 18,7
PENETRATION RATES
INSURED DWELLINGS
TOTAL DWELLING
% 26,8
TURKEY IN GENERAL
12
.98
8.6
63
Total No of policies
3.5 mio
Annual premium
214 mio USD
Avg. Sum insured
38.000 USD
Avg. Premium
62 USD
Total Claim Files (paid)
11.250
Total claims paid
13 m USD
TURKISH HOUSEHOLDERS
TREASURYGENERAL DIRECTORATE OFINSURANCE
TCIPBOARD OF DIRECTORS
INSURANCE COMPANIES
REINSURANCE
IT
FUND MANAGMENT
AGENCIES BROKERSBANCASSURANCE
DIRECT & ADC
CONTRACTUALAGREEMENT
PR
CLAIM OPERATIONS
CLAIM
TURKISH HOUSEHOLDERS
TREASURYGENERAL DIRECTORATE OFINSURANCE
TCIPBOARD OF DIRECTORS
INSURANCE COMPANIES
REINSURANCE
IT
FUND MANAGMENT
AGENCIES BROKERSBANCASSURANCE
DIRECT & ADC
CONTRACTUALAGREEMENT
PR
CLAIM OPERATIONS
CLAIM
STRUCTURE OF TCIP
DASK CENTER
ACENTALARCOMPANIES / AGENTS
INTERNETINTERNETINTERNETINTERNET
DMZDMZ
WEB SERVERWEB SERVERWEB SERVER
DATABASE
J2EE APPLICATIONSERVER
J2EE APPLICATIONSERVER
CALL CENTERCALL CENTER
LEASED LINELEASED LINELEASED LINELEASED LINE
FIREWALLFIREWALL
DISASTER RECOVER CENTER -
WANWANWANWAN
DMZDMZ
WEB SERVERWEB SERVERWEB SERVER
DATABASE
J2EE APPLICATIONSERVER
FIREWALLFIREWALL
REPLICATION
LDAP
LDAP
ISTANBULANKARA
STATE OF THE ART TECHNOLOGYUNINTERROPTEDSERVICE
SCOPE OF COVER AND TARIFFICATION
TYPE OF CONSTRUCTION
Zone1
Zone2
Zone3
Zone4
Zone5
Steel, RC 2.20 1.55 0.83 0.55 0.44
Masonary 3.85 2.75 1.43 0.60 0.50
Others 5.50 3.53 1.76 0.78 0.58
TYPE OF CONSTRUCTION
UNIT ONSTRUCTION COST PER M²
Steel, RC 590 TL
Masonary 425 TL
Others 220 TL
Type of constructio
n
Sum Insured
Turkish Lira
Zone1
Zone2
Zone3
Zone4
Zone5
Steel or R/C 59.000 140 101 59 42 36
Masonary 42.500 174 127 71 36 31
Others 22.000 131 88 49 27 25
Prices for a 100 square meter dwelling
SIMPLE TARIFF
Earthquake Zone
Construction Type
M² of apartment
SCOPE OF COVER
Only Earthquake and following
Fires
Explosions
Landslides
Tsunami
INSURABLE PROPERTY
Only BuildingNo contents
No BI
Land Registrar Office, Mortgage transaction ,Water Bureau, Electricity Bureau are control pointsPublic perception on public aid has not been changed
Land Registrar Office, Mortgage transaction ,Water Bureau, Electricity Bureau are control pointsPublic perception on public aid has not been changed
AFAD (Disaster and Emergency Management Presidency) has been establisheddecentralized cat managementIncreased cooperation between AFAD and other instittionsIncreased involvement into national earthquake issuesParticipating into Istanbul Disaster and Emergency Action PlanImproved the terms and conditions of Tariff and Earthquake General Conditions
AFAD (Disaster and Emergency Management Presidency) has been establisheddecentralized cat managementIncreased cooperation between AFAD and other instittionsIncreased involvement into national earthquake issuesParticipating into Istanbul Disaster and Emergency Action PlanImproved the terms and conditions of Tariff and Earthquake General Conditions
PROGRES
AFADCOORDINATING NATIONAL ACTIVITIES
ACVIEVEMENTS
MAJOR ACHIEVEMENTS OF TCIP
Improved penetration from 4% to 26%
Increased public awareness for earthquake and insurance
Centralized marketing activities and brand management
Kept pricing at affordable level
Enhanced claims-paying capacity: USD 3,3 billion
Solid reinsurance program
Increased operational efficiency
Improved coordinated work between the public agencies, the
insurance industry, universities, etc..
Model structure for effective public-private partnership
Lack of coordination
No effective renewal follow-up
Lack of knowledge on promotion
and discounts
Lack of necessary information
Inadequate intermediary operation
skills
Fraudulent policies
Lack of coordination
No effective renewal follow-up
Lack of knowledge on promotion
and discounts
Lack of necessary information
Inadequate intermediary operation
skills
Fraudulent policies
OPERATIONAL OBSTACLES IN HE FIELDOPERATIONAL OBSTACLES IN HE FIELD
PENETRATION
Two policies on one dwelling
Mismatch of policy periods
Printing paper
Collection problem on residual
payments
Law commission income
Stretchy cancellation procedure
Two policies on one dwelling
Mismatch of policy periods
Printing paper
Collection problem on residual
payments
Law commission income
Stretchy cancellation procedure
SENDING POLICIESBY E-MAIL
Emphasizing renewal obligationMutual follow-up activitiesEstablishing centralized call center support center
For renewalsFor claim
Emphasizing renewal obligationMutual follow-up activitiesEstablishing centralized call center support center
For renewalsFor claim
RENEWALSRENEWALS NEW CLIENTSNEW CLIENTS
Increase control pointsSupport internet salesEstablishing centralized call center support center
To reach 10 Mio peopleShared call center sales infrastructure
Organize sales campaignIncreased communication activities
Increase control pointsSupport internet salesEstablishing centralized call center support center
To reach 10 Mio peopleShared call center sales infrastructure
Organize sales campaignIncreased communication activities
IMPROVEDPAYMENT
TERMS FOR INSURANCE
CO’S
CREDITCARD PAYMENT
INCREASING PENETRATION
SENDING POLICIESBY E-MAIL
Emphasizing renewal obligationMutual follow-up activitiesEstablishing centralized call center support center
For renewalsFor claim
Emphasizing renewal obligationMutual follow-up activitiesEstablishing centralized call center support center
For renewalsFor claim
RENEWALSRENEWALS NEW CLIENTSNEW CLIENTS
Increase control pointsSupport internet salesEstablishing centralized call center support center
To reach 10 Mio peopleShared call center sales infrastructure
Organize sales campaignIncreased communication activities
Increase control pointsSupport internet salesEstablishing centralized call center support center
To reach 10 Mio peopleShared call center sales infrastructure
Organize sales campaignIncreased communication activities
IMPROVEDPAYMENTTERMS FOR INSURANCECO’S
CREDITCARD PAYMENT
TCIPDISTRIBUTIONNETWORK
CAMPAIGNES
HOUSEHOLDERS
PUBLIC RELATION AND EDUCATION
PUBLIC OFFICES
CHECK POINTS
Providing collaboration with related public cooperations and institutions Searching way to provide instant control of policies when the service or administrative act take place Getting the support of local administratives in this area Integration with land registry and cadastre (TAKBIS)information system
Increasing cooperation with insurance firms and agenciesImproving operational process Informing agencies more effectivelyIncreasing practices for motivation regarding sales
Advertising and awareness activities Increasing public relation activities Participating in social responsibility
projects Providing broad public support to ZDS (academicians, media, public institutions, local management, art community, businessmen, politicians, construction sector and related foundations and institutions...)
TCIPDISTRIBUTIONNETWORK
CAMPAIGNES
HOUSEHOLDERS
PUBLIC RELATION AND EDUCATION
PUBLIC OFFICES
CHECK POINTS
INCREASING PENETRATION
Turkey tour for 50 days, visiting 45 cities in 2009 Face to face interaction with 300.000 people in total Seminars in the cities
“The reality of earthquakes and the importance of mandatory earthquake”
Meetings with local managers Stands at train stations
Hürriyettreni
CONTINUES COMMUNICTION AND PUBLIC RELATION