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Hayatımız Sigortalı Magazine January 2016 - 05/01/2016

Hayatımız Sigortalı Magazine January 2016 Aydın Satıcı Interview

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Insurance Information and Monitoring Center (SBM) became the Innovation Life Cycle Champion at InovaLIG. SBM General Manager Aydın Satıcı says success was brought about by the whole sector acting as one team.


Turkey is running to the future with innovation...We've entered an era when innovative practices and projects have become widespread in all industrial branches and we're moving forward towards our 2023 goals with assured steps. And the insurance sector, which is seen as one of the locomotive industries of the economy, is among the major pioneers of this trend..And the industry crowned its determination in this area at the Turkey Innovation Week organized by Turkish Exporters' Assembly and the Ministry of Economy in December. By leaving behind the leading brands of the world at InovaLIG, Insurance Information and Monitoring Center (SBM) became the champion in Life Cycle category.

As Hayatımız Sigortalı magazine, we hosted SBM General Manager Aydın Satıcı as our cover guest in the first issue of the new year and listened to their success story from him. Aydın Satıcı stated that this is the success of not only SBM but of the insurance industry as a whole and said, "From the idea creation stage to implementation, insurance industry is behind all processes and projects of SBM". Satıcı stated that this achievement also was a reward for SBM, which celebrated its 12th anniversary in last December, and the progress that insurance industry has made. Satıcı stated that they are an indispensible part of the insurance industry.

Product Development Speed is the Biggest Advantage

Satıcı stated that there's a public consensus that they won this award because of the mobile accident report application however that they received this award because their innovation life cycle is near perfect.

Satıcı stated that there's 6 months of effort behind the award and that after the initial application, the innovation culture of SBM was reviewed via detailed surveys and visits and after the review they were among the final 10 contestants. Satıcı stated that during this process, it was their product development speed that impressed the jury most and that they are able to develop a new product every two weeks especially in the areas of mobile application and SMS inquiry service. Satıcı said "In 2015, we commissioned new SMS services like part detail, reminder service and SMS inquiry service for deceased person policy inquiry. Our biggest advantage was our ability to implement them quickly after the initial idea stage." Satıcı said they use the agile approach and that this method enabled them to launch new products on a continuous basis. 

Physical damages can now be tracked via SBM

Physical damage problem is a common problem of the insurance sector. Especially the retrospective physical damage claim files put too much pressure on the sector. Physical damage claims do not appear in the systems of Insurance Information and Monitoring Center (SBM). However recently, SBM signed a protocol with Security General Directorate to transfer physical damage claim files to its system. Satıcı stated that with this new flow of information, which will start in 2016, they would enable the insurance companies to take faster action with regard to physical damage claims.

We'll represent our country at the international level

Satıcı also stated that they were among the top three finalists and then the competition got more intense after that. Satıcı stated that at the award ceremony, they knew they would at least get the award for the third place among 488 contestants but that the idea of being the champion excited them and said " After they announced the winner for the third place we got even more excited and when the winner of second place was announced we started to celebrate it even before our team was invited to the stage." Satıcı​ said that they received the championship award from President Recep Tayyip Erdoğan and continued as follows: "Having received the award from our President Recep Tayyip Erdoğan made this award even more valuable. Our president has been joining the innovation competition personally for the last 2 years and places great importance on enabling Turkey to launch innovative brands to the world"

Satıcı stated that thanks to this championship award, they will be able to represent Turkey at the international level and said "We've been entitled to represent our country at International IMP3rove Award which is the innovation competition of Europe next year." Satıcı also said they will join The GSMS's Global Mobile Awards competition with their mobile accident report application and 5664 Parts inquiry SMS service.​


We should be chasing this potential collectively

Satıcı stated that Turkey offers a huge growth potential and that the increase in the insurance rate will help decrease financial loses of insurance companies. Sacı said, "The bigger your portfolio is the higher flexibility you would have. And you can easily cover any possible big damages. It also lowers claim-premium ratios. And that's when sustainable growth comes." Sacı also said "While the per capita insurance premium in our country is 153 USD, it is around 3.000 USD in Germany which is similar to Turkey in terms of culture and population. And their premiums are high too. Premium generation, which is currently 30 billion TL, should be increased to 100 billion TL. We all have to chase this potential collectively."

Sacı stated that Turkish insurance industry ranked among top three in terms of growth rates in Europe and that they have high hopes for the future. Sacı said, "While the size of the sector was 2 billion USD 10 years ago, it is now around 11 billion USD. It means we've grown 6 folds. During the last five years the industry has grown 100% in real terms. If we continue to grow at this speed and solve the profitability issue, we'd be able to catch the figures in Europe".

The first and only three products in the world

Sacı stated that their top 3 innovative products are the first and only products in the world. Sacı stated that these products are mobile accident report, Kokpit and SMS Inquiry Service that provides parts information for claim files with expert reports and said "With our application that offers parts information, the users just need to send their license plate number and accident data via SMS. Then we retrieve the information about which part of the vehicle was repaired and painted after that accident." Sacı stated that thanks to this application, the beneficiary knows that vehicle damage history is kept and that it would be useful in the second hand market. Sacı also said that the new application would also result in a decrease in the amount of accidents with material damage.

Kokpit is a dashboard application that the decision makers in the insurance industry can use for their analyses. Sacı said that this application as well is one of the first-of-its-kind applications in the world. Sacı stated that Kokpit helps the managers of the industry in their decision-making processes as it provides real time data and that the application is available on tablets and smartphones too.

Another innovative product by SBM is the mobile accident report. Sacı stated that the mobile accident report, which eliminates the need for pen and paper and allows the users to create their accident reports using their smartphones. Sacı stated that the mobile accident report has many benefits like saving time, speeding up the claim processing, and keeping accident statistics.


Beneficiaries will pay only as much as they use

Two major items in 2016 agenda of SBM are Telematics system and the Direct Reimbursement System. Sacı stated that they're currently working on these projects and that they will bring many benefits to the industry and beneficiaries alike.

Sacı stated that, with the "pay-as-you-go" model, the telematics device installed on the vehicles will help distinguish between good and bad drivers and they will keep all statistics in SBM systems. Sacı said, the telematics device will collect information such as driving habits, or weather or not the driver complies with speed limits. Sacı stated that these data generated would be scored at SBM and that these scores will be shared with insurance companies and said "Insurance companies will review these scores to offer policies with discounted premiums for their beneficiaries."

Sacı stated that, in addition to numerous companies working on the Telematics system, they're currently talking with three GSM operators that are experts in the area of Internet of objects. Sacı stated that they would soon be directing drivers to accredited companies to buy their telematics devices but that these companies are not certain yet. Sacı stated that reliability is very important at this point and said, "We'll make sure that the devices are installed by companies accredited by SBM and we'll not work with a single company. We'll cooperate with companies that meet our specifications. Currently a telematics device costs around 100 USD. The drivers will have them installed just once and will cover for that cost at the time of first policy removal." Sacı also said that the data would start to be collected in 2016.

Sacı stated that President Recep Tayyip Erdoğan visited SBM’s stand after the award ceremony and that the president reviewed SBM applications in detail. Sacı added that President Erdoğan asked questions about weather or not these applications are free of charge, any support was received during the development phase and questions about the team that developed the applications. Sacı said, “We told our President that these projects were developed by Turkish engineers and with our own budgets”.

There may be weekly or monthly policies

Sacı said, "Data generated should be meaningful", and stated that the correct address for that is the stage where liability insurance, comprehensive coverage and life insurance policies are generated. Sacı​​ who stated that with the data to be generated by telematics devices, beneficiaries will be able to get coverage at lower prices said that insurance companies will then be able to develop new products based on this flexibility.

Sacı stated that liability insurance is a social phenomenon and that every vehicle in traffic posed risks for third parties and said "If remove from the system, the claim paid in liability insurance category, there would be a chaos greater than terror in the country. Currently 16 million vehicles out of 19 million vehicles have coverage. Thus, liability insurance offers great benefits. But if a driver is not using his vehicle, telematics devices will reveal that. And the companies will be able to offer weekly or monthly products after a change in the related legislation".

SBM in Figures

  • Annual transaction volume of 14 billion
  • Works in collaboration with 15 state authorities
  • Has 85 thousand registered users in addition to actuaries, experts, insurance companies and bank branches
  • SBM keeps claim and policy data of 30 million beneficiaries
  • SBM keeps 320 million retrospective policy information in its database.
  • SBM has 5 million Accident Reports and 48 million claim files in its system.

With Direct Reimbursement Competition in Service will replace Competition in Pricing

Sacı stated that during the claim process the insurance company repaired the vehicle of the other party and that with the Direct Reimbursement System (DTS), the insurance company will serve its own customers and make them happy as well. Sacı indicated that, this way, liability insurance will function as comprehensive coverage and said, "With DTS, service competition will replace price competition in liability insurance. Companies will make a difference with their services and this will result in customer loyalty in liability insurance as well."

Sacı stated that Mobile Accident Report is complementary to DTS and said "When these two applications are combined, insurance companies will be able to offer new services that will make a significant difference for their beneficiaries."​

Participation will be on a volunteer basis for companies

Sacı stated that infrastructure and simulations are ready and that the preparations for the protocol are currently underway. Sacı stated that the new application will not be mandatory for 32 elementary insurance companies and that all companies will be able to take part in this application thanks to the simulations they will develop. Sacı continued as follows: "Every month, every company will pay the claim for its own beneficiary and these files will arrive at SBM. When the month is over, we'll review that particular month. We'll analyze data to see which company owes money to which company. We'll function as a barter room. Recourse transaction as well will take place via SBM. A dedicated board will be formed at TSB and that board will review the results of our calculations. If everything is complete, we'll give approval and the bank will directly reimburse the beneficiary via bank transfer"

Liability Insurance Premium Returning to Normal Levels

Sacı stated that we are not aware of the value we receive in return for the premiums we pay for our policies and that the beneficiaries should understand what a specific insurance product offers to them. Sacı gave the example of liability insurance in this case and said "I pay 600 TL for a policy that provides 2 million 958 thousand TL coverage. There's a huge gap between the coverage and the premium paid. If I don't make any claims for 10 years and then make a claim after that, my company will pay 10 times the premium I've paid until then."

Sacı stated that companies make investments and develop premiums that cover their costs as well and said "Premiums were so low last year. Some companies put pressure on the sector causing the sector to incur a loss. Customers went to whoever offered a lower quote. But things are getting back to normal. Next year, premiums will reach their normal levels because the companies have started to calculate their risks correctly."

Don't come back if you don't win the championship

Insurance Information and Monitoring Center (SBM)'s championship at InovaLIG attracted a great deal of interest in the sector. Sacı stated that he steadily briefed the sector starting from their placement among top ten until their placement in top three in the competition and that he invited them to share their excitement. Sacı said they received many e-mails with wishes for success during this period. And one of the most interesting e-mails among them was the one sent by SBM Board Member and Aksigorta General Manager Uğur len. Sacı said Gülen, who knows about all the applications developed and believes in them, said "Don't come back if you don't win the championship" to motive the team.

Innovation is in the kitchen at home

SBM General Manager Aydın has two children, one is a university student and the other is middle school student. Sacı said his wife currently works on her PhD degree and said, "Everyone at home is student". Sacı said in the household, innovation is in the kitchen and said, "My wife loves to try out different and original dishes. We never eat the same dish.

I love to see the computer talk

Originally from Manisa, Aydın Sacı is a graduate of the Department of Computer Engineering of Bosporus University. Sacı said after the university examination, he decided to study the department and college with the highest acceptance scores and that he fell in love with computers when he first saw them at the university. Sacı said he was amazed when he wrote his first software. Sacı said, "I loved to write a code and make the computer talk."

We buy everything on Internet but get the insurance policy from the agency

Sacı stated that computers are an indispensible part of the whole household in their daily lives and said "We prefer to use Internet in many areas like clothing or food. We have a courier knocking our door everyday. Sacı said they buy almost everything online but they get their insurance policy from the agency. Sacı stated that after the 20th of the month, their Internet slows down and said "Because we all watch foreign TV shows, we reach our monthly limits".

He has signature on transformation projects in his ex-companies

After graduating from the department of computer engineering at Bosporus University where he received full scholarship, AydınSacı started his career at Unilever and worked here as the project leader in the first Sales Force Automation project of Turkey. In 1997, Sacı started working at Citibank and after 6 years, moved to Ziraat Bank in 2003 and played active role in the completion of the basic transformation projects of the bank. Sacı started working as CIO at Turk Telekom Group and completed his 22-month Executive MBA degree at Bilkent University and received his MBA diploma. For the last 3 years, Sacı has been working as the CEO of Insurance Information and Monitoring Center (SBM). Sacı is married and has 2 children aged 13 and 19.​​

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