2023 Global Insurance Outlook
2023 edition of the annual EY Global Insurance Outlook explores complex market dynamics and their impact on insurers’ growth and transformation plans, product and investment portfolios, and financial performance. EY also views current events and market conditions through the lens of the industry’s purpose, which grows more relevant by the day.
Keyed to these market realities, this year’s Global Insurance Outlook focuses on:
- An uncertain turbulent macroeconomic and geopolitical landscape
- The huge global protection gaps caused by the combination of climate change, cyber threats and social and demographic changes
- The need for new value propositions and innovative solutions
Academia seeks more in-depth data
During last week’s visits to Eskişehir Osmangazi University and Bilecik Şeyh Edebali University, Sigorta Dünyası found out that academicians are in need of better data inflow from the industry. Professors, associate professors, and faculty members we interviewed emphasized the importance of developing relations between the insurance industry and academia, adding that more in-depth, multifaceted data across a wide spectrum was needed for PhD-level studies, rather than the sharing of specific data sets.
Insurance has the potential to grow fivefold
Contrary to expectations, insurance awareness is not low in Turkey, however, the habit of taking out insurance and confidence in the industry must grow, Necmi Üze, Chairman of the Board of Directors of ÖzserNeo Sigorta ve Reasürans Brokerliği and dijipol.com, said as the guest of our journal’s 745th edition. “Our country has the potential to double, or even triple, premium generation in the short term, and reach as much as 50 to 60 billion dollars in the medium term,” Üze said.
Ekolojik – Anatolia losing historic structure qualities
Archeologist Nezih Başgelen said historic structures that previously underwent almost complete restoration were flattened by the recent earthquake. “Was seismicity not taken into account at all in such big budget restoration projects?” “Anatolia has lost its historic structure qualities due to faulty restoration projects,” Başgelen said.
2.7 liras were earned for every 100 liras that entered the safe
The Insurance Association of Turkey released financial results for the first quarter of 2023. Excluding reinsurance companies, the industry posted 4.14 billion liras of total net income, while reinsurers suffered a total loss of 612 million liras due to the impact of the February 6 earthquake. Casualty and property insurers generated 92 billion liras of total premium, posting a net income of 2.55 billion liras. This result means only 2.7 liras of profit were made from every 100 liras that entered the safe. Life insurers, who generated 11.85 billion liras of premiums, registered 1.60 billion liras of total profit.
‘Unfair cancellation and portfolio ownership’ debated at ITO meeting
Insurance industry stakeholders gathered at a symposium entitled “Unfair Cancellation and Portfolio Ownership,” organized by the Istanbul Chamber of Commerce’s (ITO) Sectoral Committee.
Committee Chairman Özgür Yılmaz was the moderator at the meeting where IRSA Chairman Mehmet Akif Eroğlu, IRSA Vice Chairman Ebru Gençosmanoğlu, the Union of Chambers and Exchanges of Türkiye (TOBB) Insurance Agencies Executive Committee (SAIK) Chairman Levent Korkut and Attorney Dr. Ahmet Karayazgan discussed the topic of unfair cancellations and portfolio ownership, which are important problems faced by insurance agencies.
Tests commence on Traffic Proposal Platform
The 1st of June marked the beginning of the trial period for the Traffic Proposal Platform, which was developed as part of a set of countermeasures to the problem of traffic insurance policy non-purchase. As part of the system whose technical infrastructure was concluded on 12 May, requests from customers unable to buy policies will be transmitted to the platform or, if no company proposal is available on the platform, to a shared pool to be distributed equally among the companies.
Cigna Emeklilik becomes ‘QNB Sigorta’
Cigna was rebranded as “QNB Sigorta” after QNB Finansbank acquired full ownership of the company. Cigna Sağlık Hayat ve Emeklilik which has been active in the private pension and insurance industry since 2007, signed an accord for a new transition. From here on, the company will continue to operate in the future as QNB Sigorta.
China’s insurance industry reaches $4 trillion in net worth
The insurance industry in China, the world’s second biggest economy, is growing in giant steps as well. The country’s insurance industry recorded consistent growth in the first quarter of 2023 to reach a net worth of $4.04 trillion. The industry grew by 4.5 percent in the first quarter, according to data from China’s National Financial Regulatory Board.
Limit introduced on files sent to arbitrators
The Directive for Arbitration in Insurance was amended to limit the number of case files on disputes an arbitrator can be appointed to in a month to a maximum of 70. If the number of applications to the Commission is high enough to necessitate the appointment of more than 70 cases to an arbitrator in a month, the Commission can send more files to the arbitrator in question after notifying the Agency. IRSA may open an exam to add new arbitrators to its list as needed if the number of files assigned to an arbitrator exceeds the monthly maximum number over a six-month period.
