Insurance & Reinsurance Brokers and Information about Brokerage Profession

History of broker inTurkeyThe first regulation about Insurance and

Reinsurance Brokers was issued in 1995.

Current regulation was brought into force in 2008.

Number of Brokers?The number of Insurance and Reinsurance Brokers operate in Turkey

2006-562007-602008-652009-722010-782011-present-81Annual growth rate: Approximately %10

Market share of Brokers?The market share of Insurance and Reinsurance Brokers operate in Turkey

NON-LIFE2006- 9,2%2007- 9,7%2008- 10,5%2009- 11,3%2010- 10,8%2011-first 3 months- 12, 1%

Market share of Brokers?The market share of Insurance and Reinsurance Brokers operate in Turkey

LIFE2006-0,9%2007- 0,9%2008-0,7%2009-0,9%2010-0,8%2011-first 3 months-0,7%

Type and Number of Licences?Licences of Insurance and Reinsurance Brokers

operate in TurkeyTo be in possession on only Non-Life Licence : 6To be in possession on only Life Licence : 1To be in possession on only Reinsurance Licence :

3To be in possession on Life and Non-Life Licence :

8To be in possession on Reinsurance and Non-Life

Licence : 5To be in possession on all Licences : 58

What is required to become a Broker?FINANCIAL COMPETENCE

TECHNICAL COMPETENCE

EXPERIENCE COMPETENCE

What is required to become a Broker?FINANCIAL COMPETENCE

- MİN. 100.000 TL PAID-IN CAPITAL

- ADDITIONAL 25.000 TL OF CAPITAL FOR EACH LICENCE

- THE CAPITAL OF OPERATING BROKERS

CAN NOT BE LESS THAN %10 OF THEIR TOTAL ANNUAL COMMISSION REVENUES

What is required to become a Broker?EXPERIENCE COMPETENCE

- HIGH EXECUTIVE WHO HAS THE SIGNATURE AUTHORITY MUST HAVE A

MİN 10 YEARS OF INSURANCE BACKGROUND.

- OTHER EXECUTIVES MUST HAVE MİN 5 YEARS OF INSURANCE BACKGROUND.

What is required to become a Broker?TECHNICAL COMPETENCE

- TECHNICAL REQUIREMENT IN WORK PLACE

- SOFTWARE REQUIREMENTS- TO HAVE SUFFICIENT TECHNICAL

PERSONNEL- TO HAVE A PROFESSIONAL INDEMNITY

INSURANCE

What is required to become a Broker?TECHNICAL COMPETENCE

- TECHNICAL PERSONNEL- FOR HIGH-SCHOOL GRADUATE: 5 YEAR

INSURANCE EXPERIENCE- FOR ACADEMY GRADUATES (2 YEARS EDU.): 3

YEAR INSURANCE EXPERIENCE- FOR ACADEMY GRADUATES OF INSURANCE

AND ACTUARY SCHOOLS (2 YEAR EDU.): 2 YEAR INSURANCE EXPERIENCE

- FOR UNIVERSITY GRADUATES (4 YEAR EDU.): 1 YEAR INSURANCE EXPERIENCE

What is required to become a Broker?TECHNICAL COMPETENCE

- PROFESSIONAL INDEMNITY POLICY :- LIMITS MUST BE :

EACH OCCURENCE MİN. 200.000 TL AND IN AGGREGATE MİN. 1.000.000 TL

Brokers’ ObligationsFINANCIAL OBLIGATIONS

- Brokers who have authority to make payment collection per their agreemens with Insurance Companies, can only recieve these premium payments via dedicated customer accounts.

- They can not generate any income other than Commission and consultancy&risk management fee from represented customers.

- They can not pay any insurance claim or any advance payment related to that claim.

Association of Insurance BrokersAlthough the Association’s name only contains

“Insurance” word, it actually represents both Insurance and Reinsurance Brokers.

It is the only entity in Turkey which represents Brokerage Profession.

was established in 1991 when “Insurance” was not legally defined as a profession in Turkey.

In 2005, it was accepted into BIPAR (Europe Insurance Agent Federation) , and currently it is the only entity representing Turkey in the Federation

Now , it has 78 members.

Association of Insurance BrokersWith the regulation came into force in 2008, General Directorate of Insurance gave the Association authority to;

Control and complete the new licence applicationsReceive approval of new Technical PersonnelPrepare notice of Technical Personnel cancelationsEnsure data entry of year end financial information

via Insurance Brokers Information SystemNotify any modications about current brokers and

obtain necessary permissionsOrganize Technical Personnel TrainingsPrepare Technical Personnel ID CardsTo determine Technical Personnel competence

criterias

Association of Insurance BrokersMissionTo defend the common interests of the Insurance and Reinsurance BrokersVisionTo be a pioneer of this area, having distinguished members producing high-quality services at the highest level of professional and ethical codes of practice leading to reference sources to be proud of the members of the association, build our vision.

Association of Insurance Brokers

THANK YOU!!!!