TURKEY: ALLIANZ Sigorta's head pleads for stronger insurance regulation

Turkey should launch strong regulations in the insurance sector as it did in banking after the 2001 financial crisis to ensure the healthy growth of the economy, recently stated Alexander ANKEL, CEO ALLIANZ Sigorta, the Turkish non-life insurance subsidiary of the German group. "The market has been driven by the strong appetite for fast growth, so the competition is fierce and there is no discipline in pricing," said ANKEL to Hurriyet Daily News, noting the sector was "overpopulated" with 39 companies.

According to ALLIANZ top executive, the underwriting losses registered by the Turkish market rose to $1 billion in 2010, 45% higher than in 2009 and more double as compared to 2008. The explanation lies mainly in the fierce competition and lack of regulation. Unfortunately, low profitability and underwriting losses also cause decline in customer service, weakening the public trust in the insurance sector. Moreover, a good profitability is essential also in order to capitalize on the high potential of the Turkish market. "Turkey still has insurance penetration which stays at 2 percent of the gross domestic product of the country," he said. "In order to convince shareholders overseas, Turkey need to become a market that does not only have the potential to grow but also to produce return on investments." Consequently, "moving toward a regulatory framework that is more in line with the banking industry" is crucial to attaining sustainable growth in Turkey's insurance market, he said.

Turkey's economy administration has done a fantastic job by launching strong regulations in banking after the 2001 crisis, the chief executive said. "Unfortunately, this is not yet the case for the insurance industry."

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

Turkey: BMS to expand its ops with local counterpart

The independent re/insurance broker BMS Group Limited (BMS) said it has entered into a tied representative agreement with Turkish specialist re/insurance broker RONESANS Reasurans ve Sigorta Brokerlik A.S. (RONESANS).

2018-06-28

A Turkish operational leasing firm acquired MAGDEBURGER Sigorta

Turkish operational leasing company BORLEASE Otomotiv acquired MAGDEBURGER Sigorta, a non-life small insurer owned by two local units of German group ALLIANZ: the non-life unit ALLIANZ Sigorta (80%) and the life and pension company ALLIANZ Yasam ve Emeklilik (20%).

2018-06-07

HOWDEN to acquire majority stake in Turkish broker ACP

HOWDEN, part of HYPERION Insurance Group, announced that it has entered into an agreement to acquire a majority stake in Turkey largest independent re/insurance broker ACP from private equity fund MEDITERRA CAPITAL and existing management shareholders.

2018-04-12

ON THE MOVE

Public insurers appoint Achim Bosch to reinsurer board

The supervisory bodies of Deutsche Ruckversicherung AG and the Association of German Public Insurers decided today, to appoint Achim Bosch (53) to the executive board of the two reinsurers, where he will be responsible for non-life reinsurance.

11.10.2018

TOP EVENT

Five new XPRIMM insurance reports to be launched in Baden Baden

Five new titles will be available this year on the XPRIMM Baden-Baden press stands opened in the Kurhaus Casino and in Baden Baden main locations, presenting the latest statistical data and comprehensive analysis for the CEE, SEE and CIS insurance markets.

11.10.2018

Croatian Insurance Days 2018 - Registration opened online

The 2018 edition of the "Croatian Insurance Days" will be held in Opatija, Croatia, on November 7-9, 2018. Organized by the Croatian Insurance Bureau, with the support of the Croatian Ministry of Finance, the conference will have, as usual, a rich and very informative program, also providing for extended networking opportunities.

11.10.2018

ICAR Forum 2018: Main conclusions

The 15th edition of ICAR - The International Catastrophic Risks Forum, taking place in Bucharest, Romania, on 9 October, touches issues of paramount concern.

09.10.2018

The 10th International Istanbul Insurance Conference started today

In emerging markets like Turkey, there can be a significant difference between insured and total insurable losses.
Focusing on closing the protection gap, the 10th International Istanbul Insurance Conference gathers in Istanbul, between the 4th and the 5th of October 2018, well-known speakers from Turkish and the global insurance & reinsurance markets.

04.10.2018

photodune-3834701-laughing-girl-xs

LIVE: 1st National Reinsurers Summit in Moscow: focus on global cooperation

Today has started in Moscow the 1st National Reinsurers Summit "National Reinsurers: Focus on global cooperation". Organized by the Russian National Reinsurance Company (RNRC) with the support of the Central Bank of the Russian Federation, the conference has the xprimm.com insurance portal as Media Partner.

20.09.2018

photodune-3834701-laughing-girl-xs

LIVE from Monte Carlo: The 62nd edition of the "Rendez-Vous de Septembre"

The 62nd edition of the "Rendez-Vous de Septembre", the annual traditional meeting of reinsurers starts Sunday in Monte Carlo. XPRIMM Publications covering the CEE, SEE and CIS insurance markets are available at the XPRIMM stand in Fairmont Hotel, as well as at the most important venues in Monte Carlo.

13.09.2018

See all