1. LatestDevelopments in theTurkishInsuranceSector Dr. Ahmet GENÇ General Director of Insurance Undersecretariat of Treasury

2. Plan Regulatory Changes, International Standards • 2007, Insurance Law no. 5684 and beyond • IAIS , ICP ‘s and Turkey’s Position • Solvency II • Developments in 2012 Indicators • Basic Figures • Some Characteristics of the Market The Future

3. Regulatory Changes, International Standards 2007, Insurance Law no. 5684 and beyond • Licensing • Reserves • Solvency/Capital Adequacy • Liquidation • Intermediaries • Loss adjusters • New institutions (SBM, SEGEM, Arbitration Commission. SAİK, SEİK)

4. Plan Regulatory Changes, International Standards IAIS , ICP ‘s and Turkey’s Position - FSAP Evaluation of 2011 results - 0 NO - 9 PO - 9 LO - 10 O

5. Regulatory Changes, International Standards • Solvency II • QIS 4 Study finished in 2010 • QIS 5 Study finished in 2011 • Insurance companies readiness and awareness level increased. • Differences between present capital adequacy system and Solvency II calculation detected.

6. Regulatory Changes, International Standards • Developments in 2012 Last Changes in Insurance Law • Assistance services • Changing Blokade/deposit rules • Arbitration intermediary fees • Compulsory insurance control • Risk Centers • Last Changes in Private Pension Law • Changing the incentive system, from tax exemption to government contribution • Participants having the government contribution rights gradually starting from 3 years. • The implementation is going to start on 1’st of January 2013. • Other Changes • Enlarging role of the TCIP

7. Indicators • Basic Figures • Premium production • 17,2 billion TL (2011, 22% increase to 2010) First half of the 2012 premium increase is 13%. • Motor insurance has 39% share, following life 16%, fire/disaster 13% and health 12%. • Players • 59 İnsurance, reinsurance, pension companies • 92 brokers • 16.616 agents • 17.868 pension intermediaries • 2.661 loss adjusters

8. Indicators • Some Characteristics of the Market • Stable Increase in Penetration; Premium production steadily growth in last 20 years except 1994, 2001 and 2009. • Fast Growing Foreign Investment: At the end of 2005 the number of foreign insurance companies was 5, out of 47, now the number is 36 out of 59.

9. The Future • Big potential • Rapid increase expectation in private pension funds, TCIP penetration in the short run. • Substantial increase expectation in the all types of liability insurance, health insurance in the medium and long run. • Product development, including tekaful products • Distribution channel development, including mutual types

10. Thankyou