THE UNDERSECRETARIAT OF TREASURY The role of information

THE UNDERSECRETARIAT OF TREASURY The role of information centers in Motor Insurance Schemes Tashkent International Insurance Forum 4 -7 June 2009 THE UNDERSECRETARIAT OF TREASURY 1

The Role Of Information Centers In Motor Insurance Schemes Requirements for Running a Motor Insurance Scheme Ø Legal infrastructure Ø Good coordinated participants Ø Trustable and countrywide central database Ø Efficient enforcement of insurance liability THE UNDERSECRETARIAT OF TREASURY 2

The Role Of Information Centers In Motor Insurance Schemes The type of an information center Ø central database Ø open to the access of respective public bodies Ø cross-checks with other sources of information Ø transferring of information regarding policies and claims Ø determination of the status of the center by the regulatory body THE UNDERSECRETARIAT OF TREASURY 3

The Role Of Information Centers In Motor Insurance Schemes Benefits of an information center Ø An efficient instrument for the regulatory body Ø Fighting Against Uninsured Driving Ø Preventing Fraud Ø Compensating the victims quickly Ø Correct Pricing THE UNDERSECRETARIAT OF TREASURY 4

The Role Of Information Centers In Motor Insurance Schemes Benefits of an information center (contd. ) Ø Correct applications of tariff Ø Minimizing premium income and tax loss Ø Minimizing the payments of Guarantee Fund Ø Prevent unfair competition THE UNDERSECRETARIAT OF TREASURY 5

The Turkish Insurance Sector 2008 MARKET DISTRIBUTION BY NON-LIFE INSURANCE BRANCHES (Premium Income) Life 13% Non Life 87% THE UNDERSECRETARIAT OF TREASURY Motor Vehicles TPL 20% 6

The Turkish Insurance Sector 2002 - 2008 Non-Life Premium Development 12 Premium Income (Billion YTL) 10 60. 00% 48. 38% 50. 00% 37. 14% 8 40. 00% 33. 75% 25. 97% 6 30. 00% 18. 21% 4 20. 00% 15. 89% 2 10. 00% 6. 27% 0 Premium Income (Billion YTL) Premium Increase(%) 2002 2003 2004 2005 2006 2007 2008 3. 1 4. 1 5. 6 6. 6 8. 3 9. 6 10. 2 48. 38% 33. 75% 37. 14% 18. 21% 25. 97% 15. 89% 6. 27% 0. 00% 1 Euro = 2 TL THE UNDERSECRETARIAT OF TREASURY 7

The Turkish Insurance Sector Breakdown of Insurance Companies According to the Branches THE UNDERSECRETARIAT OF TREASURY 8

The Turkish Insurance Sector Problems faced before TRAMER Øhigh percentage of uninsured vehicles Ømanual policies Øuncontrolled commitments and lack of coverage due to unregistered policies Øno uniform data and claims history Øincorrect application of the tariff and bonus/malus system Øunfair competition Øloss of premium and tax revenue Ødrain on the guarantee fund THE UNDERSECRETARIAT OF TREASURY 9

The Turkish Insurance Sector Turkish Motor Insurance Information Center TRAMER ØEstablished in 2003 ØPublic-private-partnership ØNon-life companies are native members ØNo budget allocation ØContribution fees from insurance companies by market share THE UNDERSECRETARIAT OF TREASURY 10

The Turkish Insurance Sector TRAMER infrastructure THE UNDERSECRETARIAT OF TREASURY 11

TRAMER Policy Producing Public Citizenship Authority 1 -)Citizenship Details Insuree namesurname Father’s name Date of Birth Place of Birth Sex Policy Details 2 -Tax File Details Company Name Company Type Establishment Date Policy Details 3 -Vehicle Registration Details Plate number Motor number Chassis number Model year Registration date Vehicle brand/model/colour Usage type Policy Details THE UNDERSECRETARIAT OF TREASURY Company Agency Citizenship, Tax, Plate Number+Chassis Number Policy Details Query by citizenship details Revenue Administration Query by tax file details Police Department Query by plate and chassis number 12

RESULTS Policy Distribution According To Tariff Levels By Years THE UNDERSECRETARIAT OF TREASURY 13

RESULTS Decrease at Uninsured Vehicle Ratio (Except Tractors and Motorcycles) 14% 12% 13. 26% 11. 83% 10. 44% 10% 9. 18% 9. 26% 2006 2007 7. 69% 8% 6% 4% 2% 0% 2003 2004 2005 2008 2003 2004 2005 2006 2007 2008 Number of Registered Vehicles 6. 6 7. 8 8. 5 9. 1 9. 7 10. 2 Number of Policies in Force 5. 8 6. 9 7. 8 8. 3 8. 8 9. 2 million THE UNDERSECRETARIAT OF TREASURY 14

RESULTS Increase at Number of Policies and Premium Income 80. 00 70. 00 60. 00 70. 91 50. 00 40. 00 21. 81 30. 00 17. 49 15. 32 14. 68 20. 00 10. 00 22. 29 0. 00 2004 THE UNDERSECRETARIAT OF TREASURY 10. 93 2005 10. 87 2006 5. 20 4. 25 2007 2008 Premium Increase Ratio Policy Increase Ratio 15

RESULTS Average Premium Per Policies By Years TRAMER’s Foundation THE UNDERSECRETARIAT OF TREASURY 16

THE UNDERSECRETARIAT OF TREASURY Thank You Gökhan KARASU The Undersecretariat of Treasury gokhan. karasu@hazine. gov. tr THE UNDERSECRETARIAT OF TREASURY 17