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VIEWS: 8 PAGES: 10

									Customer Expectation
& Satisfaction


 Lutz Bauer

 Istanbul, May 25th 2011
Some Statements to the Market
 Market is dependent on commercial
 business and compulsory retail insurances

         2010 GWP Development                            2010 GWP per Segment                              2010 Retail GWP / LoB

                Other                                                                                           Other Credit Payment
                 7%                                                                                        TCIP
     Broker                                                                                            Fire     7% 2%
      10%                                                                                                   8%
                                                                                         Retail
                                                                                          42%                                  39% Casco
                                                                                                    PA 10%
  Bank                                      Commercial
   13%                                         58%
                                                                                                           12%
                                    Agency
                                                                                                  Health
                                     69%
                                                                                                                   23%

                                                                                                                 MTPL



 13% of total GWP is generated by banks which mostly sell credit linked insurance products. This type of products
             can be considered as semi mandatory as the customer has to buy insurance to get a loan.


              Share of Commercial segment is high and retail GWP production in 2010 was only 4.8 b TRY


Within the retail segment excluding compulsory lines and credit linked insurances such as credit payment protection,
                   PA and Casco to some extent, voluntary retail GWP would be a mere 2.5 b TRY.

 * Source TSRSB Reports. Retail & Commercial shares are not official results.
 Calculated by adding commercial and retail dominant branches whenever official shares                                               3
The income level in Turkey overall is still low
to boost retail market
                                   24,7%
                                                                          Premium per Capita / GDP (2000)
                                                                          Premium per Capita / GDP (2007)
                                15,8%
                  13,2% 13,0%

           7,6%                                                                                       8,4%9,7%
       5,9%
                                                2,6%     2,6%
                                            1,2%     1,1%     1,2%2,4% 1,1%1,1% 0,5%0,9%

       Germany Switzerland United            Czech        Hungary     Poland      Mexico     Turkey OECD - Total
                           Kingdo            Republ
                             m                 ic


                                                      Developing Markets
                                           +1500 points
                          +1400 points                    +1200 points

                                   2,6%         2,6%               2,4%
                                                                           +20 points

                            1,2%            1,1%            1,2%           1,1%1,1%
                                                                                            0,9%
                                                                                        0,5%        +400 points


                         Czech Republic Hungary              Poland         Mexico         Turkey
* Source: OECD
                                                                                                                   4
Customer expectations
Who is the customer?



• On average still low income
  • However wide ranges
  • Rural – urban
  • By education and profession

• Fundamental acknowledgement of insurance
  • Between exchange of money: claims for premiums
  • And vital risk protection
  • Deductibles and under-insurance




                                                     5
Insurance is about to protect the worst case –
isn’t it?


                                 • Value: 30’ – 50’ 000 TL

                                 • Insurance full cover,
                                   no deductible




  • Value: 500’ – 1’000’ TL?
    Loss of income life-long,

  • Increased cost to sustain
    life as good as possible

  • No insurance
                                                             6
Where Can We Make The Difference ?




 Cover
   Terms and conditions             Current play
   In- and exclusions                high level
   Sum insured and deductibles        already

+ Services
  + Risk-consultancy before
    sales and renewals
  + Premium collection and           Less touched
    addendums                           ground
  + Claims
  + Assistance


                                                    7
The Accident: Make Insurance an Experience




   Give perfect service   -    and not money only




                                                    8
Who is going to develop the retail market?
The sector is in charge!



                                 From fast
                                 transactional business




  To advice and
  consultancy,

  Explain and cover
  risk

                                                          9
Summary



 Income levels are on an early stage still now
 Mandatory / obligatory insurance prevails
 Customer expectations are low – get money back!
 The sector has to explain the value of insurance


Retail only!




                                                     10

								
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