Insurance Information and Monitoring Center (SBM) General Manager Aydın Satıcı stated that the insurance coverage provided by the insurance industry is over 30 times the GDP of Turkey. Satıcı said the industry Works hard like ants and said, "An ant can lift up to 50 times of its weight".
Having stated that the total annual sales volume of the industry is 26 billion TL, Satıcı indicated that the total value of risks under coverage with this volume is around 63 trillion TL. Satıcı said "The insurance industry insures 30 times the GDP only with 26 billion TL".
Satıcı mentioned that the insurance industry represents a significant amount of economic value and said "Banking is the life vein of all sectors and is vital. Currently total loan volume is 1.4 trillion TL. However this 1.4 trillion TL is covered by the insurance industry. Loans are insured against risks of death of the debtor and the banks are able to get their money. And consumers benefit from that too and when the debtor passes away, his/her heirs don't find themselves under a huge loan burden and the loan previously received is left to his/her heirs. We also provide insurance coverage for exports".
Satıcı stated that the number of insurance beneficiaries increases every day but it is still under the desired level. Satıcı sited as follows, the main reasons to this low insured rate: Society's lack of confidence in insurance, people's belief that nothing would happen to them and that the insurance premiums are high. Satıcı stated that in Turkey where the insurance industry's business volume is around 26 billion TL, insured rate is only 1.5% and added that this rate is around 6.5% in European countries.
Annual transaction volume: 8 billion transactions
Satıcı stated that SBM handles around 8 billion transactions per year and that it corresponds to 650 million transactions per month. Satıcı also mentioned that the number of transactions handled by SBM is much higher than that of most banks in Turkey.
Satıcı indicated that the amount of policies generated on a daily basis is 75 thousand for liability insurance, 25 thousand for comprehensive coverage and 100 thousand for life insurance and said "Currently 16 million liability insurance policies, 5 million comprehensive coverage policies and 26 million life insurance policies are active. One person has more than one life insurance policies. In fact total number of beneficiaries is around 11-12 million."
Satıcı stated that SBM receives in real time, any information, claim or policy sent by the insurance companies and said "Everyday, 100 thousand liability and comprehensive coverage policy arrives in SBM's database. And other information as well arrives in SBM's data base on the same day".
We'll be able to forecast the future
Satıcı sated that SBM will be able to make forecasts using analytical applications and prevent insurance fraud. Satıcı stated that on average, 3 thousand accidents with material damage take place everyday and that half of these accidents take place in Istanbul. Satıcı indicated that, thanks to the Mobile Accident Report, they will be able to provide location-based statistics within three years and said "And we'll be making forecasts based on these statistics. And for instance we'll be able to say 'chances of an accident taking place in front of this hotel on this day and at this time is this'." Satıcı also stated that, just by looking at the customer data and actions, most companies will be able to see weather or not the customer will cancel his/her policy.
SBM can see the big picture
Satıcı stated that it is possible to prevent fraud even before it takes place by utilizing analytical applications and said, "Every insurance company made some investments to prevent fraud and they continue to do so and they will in the future as well. With the data they have at hand, they can see this only from a certain perspective. But the data we have at SBM allows us to see the bigger picture with all its stakeholders". Satıcı indicated that SBM has all agency, vehicle, beneficiary and policy information and said: "If a certain insurance company is able to detect 5% of any fraud that takes place, SBM has the capacity to detect 25% of it. SBM is the heart of insurance industry but unfortunately; we should have started fraud prevention projects before. Because fraud is the bleeding wound of the insurance industry".
16 million TL worth of fraud detected means 1 TL discount
Satıcı stated that claim is the most important parameter behind pricing and that prices would be much lower without damage and said, "we don't have the luxury of telling beneficiaries not to cause any damage. We can decrease the claim figures by detecting and preventing people or groups that engage in fraud."
Satıcı indicated that average premium for cars in the liability insurance branch is around 260 TL and that compared to the benefits provided by the product, the premium is quite low. Satıcı said "If we caught and prevented fraud worth of 16 million TL in claim payments of 5 billion TL annually, this would correspond to a 1 TL discount in every policy. When it's 160 million, it means 10 TL discount, and when it's 1,6 billion TL, it means 100 TL discount".
Having stated that they've initiated the fraud prevention project by the beginning of 2014 and that the applications they use are the best in their field. Satıcı also stated that they're investigating and researching fraud in detail and said "SAS is one of the best products for fraud prevention and we've started using it. Our goal is to detect organized insurance fraud cases. The system is ready now. Our teams have already started using it."
Copyright © 2013 Sigorta Bilgi ve Gözetim Merkezi