Union of Chambers and Commodity Exchanges of Turkey

Drawing attention to the fact that Turkey is its region’s largest industrial giant, that Turkish private sector holds the largest industrial production capacity between Italy and China, Yorgancılar went on;“We export over 20 thousand products to over 200 countries. Europe fulfills a third of its home appliance needs from Turkey. In logistics, we boast of the second largest overland transportation fleet after the United States. We are one of the most preferred 7 destinations for tourism. The yearly number of touristic visitors to Turkey has increased to 30 million. We are second in line, after China, in terms of the numbers of construction contractor firms operating abroad. Our contractors have taken on 200 billion dollars worth of projects in the last 30 years in 81 countries. Today, Turkey is doubtlessly one of the most dynamic economies in the world.”Yorgancılar stated that they have very ambitious goals for the next 15 years and plan to be one of the 10 largest economies in the world, to increase export volume to 500 billion dollars and that the insurance sector would hold an important role in reaching these goals.-A sector as partner to risk, not profitAccording to Yorgancılar, insurance sector is the only sector that partners to risk, not profit; and that without the sector the economy stall.For this reason TOBB, with its 1.3 million members, places special importance on the insurance sector and that without making this sector thrive, without ensuring that the service quality of the sector reaching world standards, it would be difficult to reach the 2023 goals. Yorgancılar went on to say that due to this period of structuralization, the sector has gone from 5 billion lira premium generation in 2003 to three times that in 2010 with 14 billion lira premium generation.Yorgancılar, “We still have a ways to go yet. According to 2009 data the per capita premium paid was 590 dollars while in our country it was only 110 dollars. If our economy is to grow, then we can’t do it without the insurance sector.”Yorgancılar emphasized that the Mandatory Earthquake Insurance, made mandatory after the quake of 1999, the ratio of insured is only 20% and of the 15 million residences, 12 million does not have DASK policies. He reminded that Turkey is situated in an earthquake zone and that earthquake insurances need to be universalized.-TSRŞB President Mustafa SuAssociation of the Insurance and Reinsurance Companies of Turkey (TSRŞB) President Mustafa Su said, “The average premium generation in the worlds is 595 dollars while in our country the number is 130 dollars. Premium generation’s part in GNP is 1.3% while it is 5% in developed countries with the world average at 3%... When these numbers are taken into account we still have a ways to go yet.”Mustafa Su stated that the summit would introduce the Turkish insurance model, hosting Turkish insurance sector architects as well as Middle East, Central Asia, the Balkans, North Africa and Eastern Europe countries’ public administration and private sector representatives.-“The sector has paid out 6 billion in claim payments”Su said that the Turkish insurance sector has been a model for many institutions and counties, with the sector employing more than 75 thousand people, generating 9.4 billion dollars in premiums and 6 billion dollars paid in claim payments.Saying that insurance companies are doing their part in cases of earthquake and flood disasters with haste, even while being the target of unwarranted criticism, and that these tests have been proudly passed by the sector.-Treasury Undersecretary Burhanettin AktaşTreasury Undersecretary Burhanettin Aktaş touched on the decline in profitability in the recent years even though the numbers of insurance policies have increased from 15 milllion in 2000 to 63 million in 2010.Speaking at the Insurance Summit, Aktaş reported that the sector has increased its premium generation from 1.8 billion liras in 2000 to 14.1 billion liras in 2010.Premium generation has regressed 29% on a dollar basis due to the 2001 crisis and 13% due to the 2009 crisis, Aktaş went on, this regression slows down the sector, 2001 regression could only be compensated in the following 2 years, the 2009 regression has been compensated in 2010 and positive signs are evident as of the start of 2011.Speaking about Turkey’s mid to long term perspectives, Aktaş stated that acting on the results of FSAP (Financial Sector Assessment Program)  would be their first plan of action, enabling Turkey’s insurance regulations infrastructure and application would be on par with international standards.