AIIF 2015 Azerbaijan International Insurance Forum 2 – 3 July, 2015

1. AIIF 2015 Azerbaijan International Insurance Forum 2 – 3 July, 2015 “Current capacities and alternative markets for reinsurance -  importance to adapt to worldwide practice” Menekşe Uçaroğlu IUC IUC

2. Content Presentation of IUC Current capacities and alternative markets for reinsurance -  importance to adapt to worldwide practice” IUC

3. 1 - IUC is a managementandConsultancy Services Group • whichoperates in area of insurancebusinessand is establishedtoaddquantifiablevalueto • Reinsurance & InsuranceBroking • Claims Handling • Network & Product Services • Training Processes of Insurance Business • LossAdjsuting • Wepresentourservicesvia5differentbrandandcompanyorganisations . IUC is based in Istanbul, Turkeyand has a representative office in Bakü, Azerbaijanand in Sofia, Bulgaria IUC Insurance & Reinsurance Broking IUC

4. REGIONAL CHARACTERISTICS OF INSURANCE MARKETS • Low risk awareness • Lack of corresponding risk management • Lowinsurancepenetration • Soft market • Strongcompetitionbetweenreinsurers • Fiercecompetitionamongbrokers • Broadening of reinsurancetermsandconditions • Consolidationandcentralisation of reinsurance • Increase of retentionlevelsbyinsurancecompanies • * IUC

5. REGIONAL CHARACTERISTICS OF INSURANCE MARKETS • People tend to repress bad experiences quite fast • Tendency to believe: It won’t hit me • Large return periods of Nat Cat events : Underestimation • People have other priorities instead of buying insurance cover • Economy isgrowing • Insurance israpidlydeveloping • Territoryisexposedtonaturalperils A Major CAT eventcan giveseriousdamagetoinsurancesectoranditsshareholder‘scapital IUC

6. GENERAL OVERVIEW OF THE TURKISH INSURANCE MARKET • ACHIEVEMENTS : BEFORE & AFTER 2000 • BEFORE 2000 • NO ACTUARIAL STUDIES • NO SEGMENTATION • NO RESERVE ANALYSIS – TRIANGLES • COMPULSORY TARIFF FOR MTPL BY GOVERNMENT • NO FOCUS ON CLAIMS AUDITING • NO FOCUS ON SUB-CONTRACTORS IUC

7. GENERAL OVERVIEW OF THE TURKISH INSURANCE MARKET • ACHIEVEMENTS : BEFORE & AFTER 2000 • AFTER 2000 • SEGMENTATION STUDIES • INTRODUCTION OF RESERVE ANALYSIS VIA TRIANGLES • SET-UP OF NON-LIFE ACTUARIAL DEPARTMENTS • FREE TARIFF FOR MTPL • SET-UP OF CLAIMS AUDITING DEPARTMENTS • SET-UP OF MOTOR LOGISTICS DEPARTMENTS • FRAUDULENT CLAIMS COMMITTEE • SET-UP OF TCIP FOR EARTHQUAKE • SET-UP OF INSURANCE INFORMATION CENTER • SET-UP OF TRAMER – CENTRAL MOTOR CLAIMS SYSTEM, • SET-UP OF HATMER, SAGMER MONITORING SYSTEMS FOR HEALTH • NEW SUB-CONTRACTORS FOR SALVAGE, CLAIMS HANDLING, GLASS REPAIR, FRAUD DETECTION, CAR REPAIR …… • INSURANCE COMPANIES’ REPAIR SHOPS • PROJECTS WITH INTERNATIONAL ACTUARIAL COMPANIES • REGULAR AUDITS BY TREASURY IUC

8. TO ACHIEVE A RESULT • Government • Insuranceindustry • Individuals (insured) • Strong commitment of all parties involved required! . IUC

9. Opportunities in linessuch as : • Agriculture • Engineering • Liability …….. IUC

10. Risk Awarenessmustimprove • Risk Management mustimprove • Claims Handling mustimprove • Catastrophe Management mustimprove • Usage of Technologymustimprove • Technical Information mustimprove : segmentation, statistics, modelling, IUC

11. Reinsurance will help you to secure the development of your business • IncreasetheRates • Create More Ties and Partnership with Regional Reinsurers • Have a More Diversified Reinsurance Panel • Diversifythe Portfolio Branchwise • Andadapttoworldwidepractice ……………….. IUC

12. THANK YOU IUC