Erhan Tuncay

1. ErhanTuncay Ex Vice Chairman of TCIP’s BoD (TURKEY) Saturday, 28.9.2013

2. TURKISH CATASTROPHE INSURANCE POOL May 2010, ISTANBUL

3. AGENDA • Background of TCIP • Current Structure of TCIP • Basic Figures of TCIP • Emergency Action Plan of TCIP

4. HISTORY • The devastating Earthquakes in Marmara region on 17th August and 12th November 1999 • Insured loss: around USD 800 milion • Economic loss: overUSD 10 billion • Low insurance penetration (especially for residential risks) • Burden on public budget • Decree law no 587 – compulsory earthquake insurance as of 27th September 2000 untill 18th of August 2012 • As from 18th August 2012 new 6305 Catastrophe Insurance Law

5. PRE-TCIP

6. ESTABLISMENT OF TCIP HOUSEHOLDERS RISK MANAGEMENTBEHAVIOUR TCIP INSURER REINSURER SALES FUNCTIONS OPERATIONAL SERVICESRISK MANAGEMENT SUPPORTCLAIMS MANAGEMENT AUTHORITIES REGULATION SUPERVISION LEGAL FRAMEWORKRISK MANAGEMENT SUPPORTDISASTER MANAGEMENT

7. STRUCTURE OF TCIP THE TREASURY GENERAL DIRECTORATE OF INSURANCE REINSURANCE TCIP BOARD OF DIRECTORS FUND MANAGMENT CONTRACTUAL AGREEMENT CLAIM MANAGEMENT COMPANY IT PR INSURANCE COMPANIES CLAIM OPERATIONS AGENCIES BROKERS BANC ASSURANCE DIRECT & ADC 16 MILLION HOMEOWNERS

8. PROGRES • AFAD (Disaster and Emergency Management Presidency) has been established • decentralized cat management • Increased cooperation between AFAD and other instittions • Increased involvement into national earthquake issues • Participating into Istanbul Disaster and Emergency Action Plan • Improved the terms and conditions of Tariff and Earthquake General Conditions • New Parliament law as from 18 August 2012 • Beside Land Registrar Office and Mortgage transaction, utility services request earthquake policies • Public perception on public aid has not been changed AFAD COORDINATING NATIONAL ACTIVITIES

9. CALL CENTER CALL CENTER ACENTALAR COMPANIES / AGENTS INTERNET INTERNET INTERNET INTERNET LEASED LINE LEASED LINE LEASED LINE LEASED LINE DISASTER RECOVER CENTER - DASK Merkez FIREWALL FIREWALL FIREWALL FIREWALL WEB SERVER WEB SERVER WEB SERVER WEB SERVER WEB SERVER WEB SERVER DMZ DMZ DMZ DMZ WAN WAN WAN WAN J2EE APPLICATION J2EE APPLICATION J2EE APPLICATION S ERVER S ERVER S ERVER LDAP LDAP REPLICATION DATABASE DATABASE IT INFRASTRUCTURE 30 INSURANCE COMPANIES APPX. 27.000 USERS REAL TIME ON-LINE OPERATION IT STRUCTURE ANKARA ISTANBUL • State of the art technology • 99,9% service level • Investing into satellite and mobile technologies • Continuous improvement • Various level Back-up services, data and programs • Disaster Recovery Center is able to be in full operation within 2 hours

10. ACVIEVEMENTS and NEW LAW NATIONAL STRATEGIC PLAN FOR 2023

11. COMPULSORY EARTHQUAKE INSURANCE

12. COMPULSORY EARTHQUAKE INSURANCE

13. SCOPE OF COVER AND TARIFFICATION • Prices for a 100 square meter dwelling

14. BASICS OF TCIP * as 06.09.2013 ** Euro 2,714

15. PORTFOLIO %43,7 PENETRATION PORTFOLIO DIST FOR EQ ZONES PORTFOLIO DIST PER REGIONS %35,5 %32,0 %28,3 %28,3 %23,8 %23,5

16. TCIP IN NEAR FUTURE 6.000.000 policies 10.000.000 number of householders to reach Increase communication and public relation activities Excelling in claim management Increased use of Technology

17. EMERGENCY ACTION PLAN • Why • Secure un-interrupted service availability • Plan “Pre-During-After” Earthquake activities • Plan available resources according to size of earthquake • Plan coordination activities with related Institutions

18. NEW ERA IN CAT MANAGEMENT • 12.01.10  7.0 Haiti Earthqauke • 27.02.10  8.8 Chile Earthquake • 04.09.10 7.1 New Zealand Earthquake • 11.01.11 Australian Flood • 11.03.11  8.9 Japan Earthquake • 22.02.11 6.3 New Zealand Earthquake

19. DASK HASAR DANIŞMA KURULU SORUMLU EKSPER BÜROLARI LİSANSLI EKSPERLER HASAR TESPİT UZMANLARI EĞİTİM PLATFORM YÖNETİM PLATFORMU SORUMLULUK BÖLGELERİ SORUMLULUK BÖLGELERİ SORUMLULUK BÖLGELERİ SORUMLULUK BÖLGELERİ SORUMLULUK BÖLGELERİ TCIP EMERGENCY CALL CENTER TO INCREASE MODELLING CAPACITY TO IMPROVE DATABASE TO IMPROVE UNDERWRITING TO INCREASE COORDINATION W/ INSURANCE INDUSTRY CAT EVENT CLAIM MANAGEMENT • Strong and efficient client contact • Emergency call center services • Fast and accurate claim adjusting • Claim adjusting resources • Main • Emergency • Collaboration with reinsurers

20. OBSTACLES SOCIAL RESPONSIBILTY AWARNESS IN PROFESSIONALS

21. LOCAL COMMUNICATION CITIES IN CONTEST EARTHQUAKE SEMINARS BRAND AWARENESS EARTHQUAKE TRAILER THE HURRIYET TRAIN TOUCHING YOUTH GENERATION TCIP MEETING YOUTH 3.NATIONAL FILM CONTEST GET SUPPORT OF PUBILIC OPINION LEADERS COLLABORATION W/ UNIVERSITIES MEETING W/ ACADEMICIANS BE CLOSE TO INSURANCE CO’S CAMPAIGN FOR AGENCIES AND BANK BRANCHES TCIP LISTENING THE INDUSTRY INC POPULARITY OF EQ INSURANCE TCIP ON SOCIAL MEDIA FREQUENT APPEREANCE ON TV FUTURE COMMUNICATION PLAN FACE TO FACE COMMUNICATON

22. CONTINUES COMMUNICTION AND PUBLIC RELATION SUCCESS CONDITION: CONTINOUS PUBLIC EDUCATION

23. CONTINUES COMMUNICATION AND PUBLIC RELATIONS SUCCESS CONDITION: CONTINOUS PUBLIC EDUCATION

24. CHALLENGES AND OBJECTIVES

25. TURKISH CATASTROPHE INSURANCE POOL