SBM General Manager Aydın Satıcı stated that
they’ve been developing applications that will bring new customers to the
sector and help companies retain their existing customers. SBM Chairman of the
Board Uğur Gülen resembled the new applications to popcorn.
Insurance Information and Monitoring Center
(SBM), the technological face of the insurance industry, held its 4-year review
meeting. At the meeting whereby the services and products offered by SBM were
shared with the leaders of the industry, the technology partners of the center
were present as well. Moderated by Nilgün Bodur, the meeting commenced with the
opening speeches delivered by SBM General Manager Aydın Satıcı, Insurance
Association of Turkey (TSB) Secretary General Mehmet Akif Eroğlu and SBM
Chairman of the Board and TSB Vice Chairman of the Board Uğur Gülen. In his
speech, Aydın Satıcı stated that their goal with the existing and new projects
is to help the insurance sector gain new customers and retain existing ones. On
the other hand, in relation to SBM’s evolution and the projects offered by SBM,
Uğur Gülen said “The popcorn in the pan started to pop”. Among the guest
speakers of the event featuring two separate panels, were Journalist-writer
Serdar Kuzuloğlu and Turkcell Corporate Sales and Solutions Director Sezin
Y and Z Generations Changed the Destiny of the Sector
Mehmet Akif Eroğlu stated that even though the Turkish insurance industry lags behind on the digital side, it uses technology effectively in its processes. Eroğlu indicated that e-commerce sales in the world is about 14% and added that share of e-commerce sales in the in the insurance industry is about 5%. Eroğlu also stated that digital insurance sales have a share of 40% in developed countries and that this ratio is as low as 20% in developing countries. Eroğlu said "The share of those who found digital channels to be important insurance sales is 81%. And the share of those that have digital technology is 47% while the share of companies that have a budget for that is 10%. Eroğlu also indicated that it is the young generation that uses technology most effectively and said "The share of young generation aged 15-24 in population is around 17%. And the Internet usage rate of this young population is 73%. Eroğlu who stated that Y and Z generations can change the destiny of the insurance industry and said "This generation which is in love with technology, offers a great opportunity to increase penetration rates, expand the product line in the sector and offer innovative products."
SBM is the most powerful player of the information economy
Uğur Gülen who stated that the insurance industry is going through a vicious circle said "The industry incurred a value loss of over 1 billion TL in terms of underwriting profitability compared to the first quarter of last year. And it incurred a loss of 600 million TL in terms of net profitability compared to the third quarter of last year." Gülen stated that all companies offer the same products for their customers and that there has not been any innovative progress and added that incorrect competitive strategies are at the heart of this vicious cycle. Gülen continued as follows: "If everyone says "I have the cheapest, I have the highest quality, I control all distribution channels.' then you see profits melting, the pie wouldn't grow and there wouldn't be any innovation."
Gülen who drew attention to the importance of setting the right goals, stated that this way, it would be possible to attain sustainable profitability and create economic value. Gülen who stated that, after this point, each company's own strategy matters, said "Companies differentiate themselves with strategies. Banking industry is a good example of that. Banks differentiated themselves with their profit targets. Some specialized in credit cards, some in small and mid-sized businesses and some in Internet banking." Gülen who indicated that the Turkish insurance industry is ahead of Europe in terms of database management, said "The information which will help us differentiate ourselves is gathered at a single center which is SBM. SBM is the most powerful player of information economy. For instance, our Belgium partner got amazed when he saw our Kokpit application. Kokpit offers instant information. And the reason why our partner got amazed is that in Belgium, data from insurance sector is published only once a year."
It is a Self-Sufficient Organization
SBM Chairman Gülen stated that their goal is to create a self-sufficient SBM and said "Currently, SBM has a 30 million TL budget. And 12-13 million TL of this budget comes from our revenues. And our main source of revenue is the 5664 inquiry line. We diversified that area a lot. And we'll also have new projects in the coming term, the popcorn in the pan started to pop already." In his speech where Gülen mentioned that SBM is the game setter, he invited his colleagues to become the driving force in terms of accessing the desired information and developing the desired format.
Goal is to win new customers and retain them
In his speech, Aydın Satıcı talked about SBM's contribution to the insurance industry, projects commissioned in 2015 and the new projects and stated that SBM serves as the databank of the industry. Satıcı who stated that the industry made good progress in terms of growth indicated that the industry, which currently generates a premium of 30 billion TL, has the potential to increase that to 100 billion TL. Satıcı stated that they're seen as a regulatory organization and added that their goal is not to regulate the sector but to ensure growth and profitability in the sector, to increase public confidence in the sector, to make SBM the data center for the sector, to establish a system to prevent fraud, to help the industry gain new customers and retain existing ones.
Total coverage provided by the Insurance Industry is 79 trillion TL
Satıcı stated that the insurance industry provided total coverage of 79 trillion TL in return for 26 billion TL premium generation in 2014 and said "These figures are equivalent to the total GDP of Turkey in 30 years." Satıcı also resembled the industry to an ant in terms of the industry being able to carry a load that is 10 times its weight. Satıcı also stated that their 1% negative impact on the sector might result in a loss of 260 million TL and their 1% positive impact on the sector might result in an added value of 260 million TL.
Annual Transaction Volume of 14 billion Transactions per Year
Satıcı stated that they're working in cooperation with 15 different public organizations and that, in addition to actuaries, experts, insurance companies, agencies and bank branches, they have around 85 thousand registered users. Satıcı also indicated that SBM keeps individual policy and claim data of 30 million citizens and said "We have insurance policy information related to 320 million policies made in the past. We also have 5 million accident reports and 48 million claim files in our database. And our annual transaction volume reached 14 billion." Satıcı stated that companies that don't use analytical applications that are not active in social media and that don't use cloud technologies will not survive in the future. Satıcı also shared Forrester's insurance industry forecasts for 2016 and said "The report emphasizes things like the effect of corporate culture on success, offering customized products, developing loyalty programs, traditional companies resist to technology and innovative companies, analytical applications serving as an important competitive weapon, importance of operations in creating value, importance of data security and ignorance of digital applications being a fatal mistake." Satıcı continued as follows "According to another survey conducted by Forrester, share of direct sales channels in sale of insurance products is 41%. 61% of the survey respondents want mobile products in order to use mobile insurance products (such as policy inquiry, claim notification and follow up). 70% of the respondents stated that they place emphasis mostly on premium amounts when they buy an insurance policy and 62% prefer "pay as much as you use" offers.
Kokpit will Forecast Future as Well
Satıcı said "The easiest way to forecast future is to create it" and stated that with Kokpit application, which is the first of its kind in the world, they provide real-time information to the sector and allow sector's players to see the future. Satıcı indicated that , with Kokpit application, the sector can access with a single click, all analyses for all insurance branches. Satıcı said "We'll also add forecast reports to our dashboard application Kokpit."
Agencies will be able to monitor their own performances
Satıcı stated that they will bring to life, the "Common Data Model Project" in 2016 and that their project partner will be Oracle. Based on information provided by Satıcı, the Common Data Model Project will allow reporting of data in different categories like agency, sector, individual and company. About the project, Satıcı said "In our project which will provide multi-dimensional data analysis, the beneficiary will be able to see all information when he logs in on SBM website. It will be his personal dashboard. This way, the beneficiary will also be able to conduct an individual risk analysis. And the agencies will be able to see their own performances and give scores".
The new claim inquiry platform: Sigortam 360
Satıcı stated that they will also be commissioning a new inquiry platform. The platform called SIgortam 360 gives the ability to make claim and policy inquiries on the web portal. Satıcı indicated that they will provide 225 business intelligence reports in 15 branches and that they will be sharing these reports with companies via web services, web portal and the mobile applications.
Insurance Fraud will be Detected with the SAS Fraud Network
Satıcı who stated that they've set up SAS Fraud Network for detection and prevention of fraud said "With this application we'll transmit all information to the analytical system which will allow us to detect relations between them to determine if there's fraud involved." Satıcı stated that this application was the first step in fraud prevention and added that as the second step, they've set up the Fraud Prevention Bureau (SİSEB).
Satıcı stated that the expert appointment system has changed on November 25th and that now the insurance companies can appoint experts via e-devlet portal. Satıcı also indicated that, as of 1 March 2016, experts will be able to score repair shops and that, this way, they've been able to prepare the infrastructure for the Direct Reimbursement System which will transform the liability insurance system. Satıcı also said that, starting with next year, they will start providing reporting services for fire data as well and that they're currently waiting for policy generation and claim information from insurance companies.
Discussing Sector's Expectations from Technology
During the second part of the 4-year General Review Meeting of SBM, a panel was held whereby the sector's expectations from technology were discussed. Among the panelists of the session moderated by SBM General Manager Aydın Satıcı were Sompo Japan Sigorta Assistant General Manager Murat Dişçi, AvivaSA Assistant General Manager Berkant Dişçigil and Fibaemeklilik Assistant General Manager Erol Öztürkoğlu.
Erol Öztürkoğlu stated that digital environment would have both pros and cons for the insurance industry and said "Digital environment which offers the right products for the right customer without any time and space limitation, brings risk such as decreased customer loyalty and increased costs for companies that don't invest in this area".
On the other hand, Murat Dişçi who said "Any company that ignores the digital realm in any of its business models cant' survive in the market." Stated that the insurance agents don't have any other option but to use technology effectively. Dişçi also mentioned that digitalization would pose risks for insurance agencies that try to survive only with liability insurance.
Berkant Dişçigil resembled digitalization to a thread mill and said "We're on a treadmill and it's moving. You either grab the rails and try to slow down or keep on running to stay fit". Dişçigil also mentioned that moving out of the static structure would result in differentiation of products and services.
At the first panel of the meeting moderated by Aydın Satıcı, the expectations of the insurance industry were discussed.
How does insurance innovation come about with SBM?
During the second panel of the conference, which was moderated by Allianz Sigorta Assistant General Manager Kaan Günay, the contributions of SBM to the innovative efforts in the sector were discussed. Among the speakers of the panel were Acıbadem Sigorta Assistant General Manager Emel Varol, Demir Hayat Sigorta Assistant General Manager Dr. Bülent Eren and Sombo Japan Sigorta Assistant General Manager Şenol Ortaç.
Kaan Günay stated that if SBM hadn't developed the Mobile Accident Report Application every company would have had to develop its own application separately and that innovative projects developed by SBM brings significant cost savings to insurance companies.
Şenol Ortaç stated that SBM possesses huge amount of usable data and that companies should use this data offered by SBM along with technological solutions, in their own innovative projects.
On the other hand, Dr. Bülent Eren stated that they wanted to use SGK Medula data via SBM and this way complementary health insurance products would be better priced.
contributions to the innovative efforts in the sector were discussed during the
Pay As Much as You Use Era With Telematics
General Manager Aydın Satıcı who stated that the new era of “pay as much as
you use” will start with the telematics system to be installed in the vehicles,
said that with this application, they will be able to share with insurance
companies, data generated by vehicles. Satıcı also stated that thanks to this
application, the insurance companies will be able to offer discounts to drivers
with good driving records.
5664 to remind Liability Insurance Policy Renewals
SBM's inquiry service 5664 allows user to make inquiries regarding claim file, policy, accident report, detail, part, and deceased beneficiary categories. SBM General Manager Aydın Satıcı stated that in addition to these information, which beneficiaries can receive via SMS, they've also commissioned a reminder service recently. Satıcı indicated that currently they can only send reminder messages only for liability insurance, and said the following about the content of the service "The beneficiary sends his policy expiration date via SMS to SBM. And our system notifies the beneficiary via SMS 30 days before the policy expiration date. If the policy is not renewed during this period, another reminder message is sent 5 days before the policy expiration date." In order to get reminder messages, one needs to an SMS containing HATIRLAT SPACE LICENSE PLATE NUMBER to 5664. Satıcı also stated that they will add new content to the inquiry service in 2016
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