“New Generation Insurance” Era of Sabancı

20.02.2018

Haluk Dinçer, the Head of Sabancı Holding Insurance Group, reported that they focus on new generation insurance business with Aksigorta and AvivaSA and added: “The one focusing on customers, offering the best customer experience and leveraging the technology will win the race”.

Haluk Dinçer, the Head of Sabancı Holding Insurance Group, hosted a meeting on February 20, Tuesday at the Sabancı Center for reviewing year 2017 in the eyes of Sabancı Holding Insurance Group, announcing 2018 goals and sharing Turkish and global insurance data; Uğur Gülen, the General Manager of Aksigorta, and Fırat Kuruca, the General Manager of AvivaSA, attended to the meeting.

Haluk Dinçer noted that they focus on new generation insurance business and the one focusing on customers, offering the best customer experience and leveraging the technology will win the race of nearly 60 companies competing in life and non-life segments. Mr. Dinçer added:

“We are experiencing a change in every sphere of life and it is getting harder to keep up. This change, led by the technology, creates a new world order, whereas needs as well as risks become the key elements of this change. As is the case with each sector, success in the insurance business depends on accurately recognizing the needs of the new world and new generations. An organization that fails to understand the new generation and this new world order cannot possibly survive from now on. As Sabancı Holding Insurance Group, we focus properly recognizing and meeting the needs of the new generation in the insurance business.”

Haluk Dinçer, the Head of Sabancı Holding Insurance Group, noted that Aksigorta and AvivaSA continue to develop innovative products for meeting the changing needs of the new generation and also improve service quality and speed of existing products by maximizing the benefits of technology and added: “As the Insurance Group, we will continue to be the influential party that makes sure that people and organizations can feel safe today and in the future. This is why we use our innovative approach today in the insurance sector and develop products of the future”.

Aksigorta made a profit of 137 million TRY profit from and AvivaSA made a profit of 145 million TRY

Haluk Dinçer reported that the Sabancı Holding Insurance Group completed a successful year; Aksigorta grew by 39 percent in 2017 and earned premiums worth 2.6 billion TRY in the elementary insurance market whereas AvivaSA grew by 51 percent in the life insurance market and earned premiums worth 461 million TRY and total net asset value of funds in the Individual Pension segment increased by 29 percent and reached 15.2 billion TRY. Haluk Dinçer mentioned that both companies achieved high levels of profitability in 2017 and summarized 2018 goals as follows:
“In 2017, Aksigorta grew by 94 percent and AvivaSA grew by 38 percent, and these two companies earned IFRS based net profit of 137 million TRY and 145 million TRY, respectively. In 2018, Aksigorta aims to increase premium by 25 to 30 percent and AvivaSA aims to achieve a growth rate exceeding the sector figures in life insurance segment and we intend to enhance our leading position in terms of the total net asset value of funds in the individual pension segment. We believe that we will maintain sustainable and profitable growth and equity performance at a level of 25 to 30 %”.

Dinçer: “In Turkey, we have a very long way to go in the insurance business”

Haluk Dinçer pointed out that the sector has premium production worth 4.7 trillion dollars on the global market and that the European market produces 1.5 trillion dollars and the Turkish market 13 billion dollars. Mr. Dinçer underlined that premium production per capita is 1620 dollars in Europe but only 164 dollars in Turkey and continued:

“We have a very long way to go. Insurance depends on economic development. In parallel to the growth of Turkey, the insurance sector will grow faster. We can see that the market had a growth trend in the last five years. The elementary insurance market grew by an average annual rate of 18 percent, life insurance market grew by an average annual rate of 23 and the total net asset value of funds in the individual pension segment grew by an average annual rate of 31 percent. The insurance sector grows at the speed 1.5 to 2 times of Turkey’s growth rate”.

Referring to Turkey’s insurance holder rates in different segments, Mr. Dinçer reminded that rate of compulsory earthquake insurance is 47 percent, compulsory traffic insurance is 78 percent, motor own damage penetration is 27 percent and health insurance penetration is 4 percent. Haluk Dinçer indicated that the ratio of participation to the individual pension system is 12 percent and added:
“As a result of the technological advancements, new risks arise in the insurance business. The cyber risk insurances created a market worth 5 billion dollars all around the world; intellectual property, databases, digital networks/platforms, intangible and fixed assets and global warming are the new risks. Global climate-related losses totaled 300 billion dollars last year. Last July, we suffered losses amounting 650 million TRY because of the flood and hail in Istanbul”.

Uğur Gülen, the General Manager of Aksigorta: “Our profitable growth will continue and we will increase our market share in 2018”

Uğur Gülen, the General Manager of Aksigorta, noted that 2017 was a year of making a move for Aksigorta and they had a very strong head start in 2018 and added: “Our Company’s market value exceeded 1 billion TRY by the end of 2017. Our total net asset value of fund grew by 35 percent and increased from 1.2 billion TRY to 1.5 billion TRY. In 2018, we will be an insurance company that assures long lasting superiority with an easy, lean and accessible insurance vision. Our people oriented strategy will create value for our shareholders, customers and personnel”.

“We set an example for and inspire foreign companies”

Uğur Gülen, the General Manager of Aksigorta, explained that innovation and technology are placed at the heart of New Generation Insurance approach and added that the primary areas of investment in the upcoming period will be customer orientation, innovation and analytics, digital and new technologies. Uğur Gülen continued as follows:

“As an alternative to the past, today we are entering an era of “integrating our business into technology” instead of “using technology in our business as much as possible”. Today, data is invaluable and we, as Aksigorta, will use data based value creation options at each stage of our current business from end to end and also for creating data and new business models. We are building end to end integrated digital platforms, and we develop better and customized products thanks to the technology and our innovative power. We offer more efficient risk management and excellent customer experience through our CRM infrastructure and use of big data. We transferred our predefined operational processes to robots; we use our quality time and human resource to offer better services to our customers”.

Uğur Gülen, the General Manager Aksigorta, reported that the company produced premiums worth 196 million TRY with Robotics Transformation Project / Robotics Process Automation (RPA), which was commissioned at the beginning of last year and has been successfully performing predefined works for a year, and the company executed 350 thousand transactions and he added:

“Virtual personnel can work 6 times more and 50 percent faster compared to the standard personnel. Our project has inspired foreign companies. We organized trainings for Etiqa, a Far Eastern insurance company, about this project. A 20-minute operation in the business processes of Etiqa now takes only 3 minutes. Our robotics technology is awarded by prestigious organizations such as IDC and Gartner. In 2018, we will use artificial intelligence technology to meet needs of our customers 24/7 with Aksigorta Digital Assistant (ADA)”.

Aksigorta will guide the future of insurance business

Uğur Gülen pointed out that they will make a difference with innovative ideas by understanding the sector and insurance business through the eyes of customers and distribution channels, and they established the Aksigorta Innovation Platform Pura for this purpose; nearly 200 Aksigorta personnel will specialize on how to come up with an innovative idea by the end of 2018. Uğur Gülen continued as follows:

“The change in technology does not remain in its cycle but also alters the consumer / customer habits. As Aksigorta, we will start to cooperate with Insurtech at this point and focus on start-up projects. In 2018, we will transform Aksigorta into a start-up friendly company. We will visit the Silicon Valley this year, focusing on Insurtech. We will meet with Insurtech organization during our trip and discuss cooperation opportunities. Furthermore, we will have contacts involving Insurtech, large start-ups and University MBA programme courses. This will allow knowledge and corporate culture transfer in the areas we determined. In addition to that, we will continue to meet insurtech organizations in Turkey on start-up challenge and demo days. Aksigorta Academy is planning a comprehensive training academy for all our stakeholders, particularly focusing on our personnel and agencies, for keeping up with the digital transformation of the new world redefined with insurtech and start-ups.”

Uğur Gülen highlighted that Aksigorta collaborates with MIT, the leading scientific institution of the world, for better understanding its customers and quickly responding to their needs and added: “We launched ‘Discovery and Analysis of Big Data in Insurance Initiative’ under the roof of Turkey’s first ‘Big Data Behavioral Analysis and Visualization Laboratory’ (BAVLAB) that was established with the power of Sabancı University and by MIT (Massachusetts Institute of Technology). Aim of this initiative is to guide analysis of big data in the insurance business and development of new strategies”.
Uğur Gülen noted that they have been shifting from product oriented insurance business to customer oriented insurance so that they can excel the journey of customer experience and added: “We are building the future insurance system. We see our 360-degree of customers and offer a perfect customer experience by getting to know our customers better”.

Fırat Kuruca, the General Manager of AvivaSA: “We created an Industry Leader”

Fırat Kuruca, the General Manager of AvivaSA, underlined that they created an industry leader having the largest direct sales staff and most advanced multi-channel structure of Turkey as well as having 1500 personnel and continued: “We became the industry leader in 2015 and we preserved our position in 2017 with total net asset value of fund amounting to 15.2 billion TRY, 19.5 percent market share and 900 thousand individual pension scheme participants and total number of customers over 2 million. We also aim to be the sector leader throughout 2018”.

Fırat Kuruca stated that “Customer Orientation” and “Digitalization” concepts will shape the future and employers having 50 to 99 and 10 to 49 personnel will be part of the Automatic Participation System and thus nearly 4 million new participants as well as 220 thousand employers will be included in the system in 2018, and this will make the importance of digitalization the key factor. Fırat Kuruca underlined that the companies that made the most productive investments in the digitalization segment will be one step ahead throughout this process and added: “As AvivaSA, we are ready for this process”. Fırat Kuruca, the General Manager of Avivasa continued as follows:

Fırat Kuruca highlighted that “Bi’tıkla (One click) Corporate and Retail Banking” online branches are the two key practices in the field of digital channels and he noted that their goal is to assure quick and easy transactions for the employers and personnel throughout the Automatic Participation process. “Furthermore, we launched an online platform on our corporate website for our customers so that the employers can quickly and easily be a part of the automatic participation system. The company officials can receive quotes and conclude automatic participation and contract processes easily without assistance of a sales consultant” said Fırat Kuruca.

Fırat Kuruca explained that the robotics solves the intense operational work load expected throughout the Automatic Participation process; the complicated operations in the existing products and processes are still being transferred to the robotics and we develop different talents of the personnel and focus on offering better services to customers thanks to its high efficiency and workforce, and we have managed to increase employee motivation and satisfaction.

Thanks to the mobile CRM platform, we are now always with our customers regardless of the device used and location

Fırat Kuruca stated that they have launched a customer oriented digital transformation programme for leading innovation in the sector and offering a good customer experience and added: “In 2017, we launched the Ocean platform and mobilized our sales team. Thanks to the mobile CRM platform introduced with Ocean, we are now always with our customers regardless of the device used and location”.

Fırat Kuruca mentioned their ongoing operations under the roof of “AvivaSA Digital Garage” for leading innovation in the sector, establishing in-house entrepreneurship culture, coming up with digital solutions improving customer and employee experiences and leading insurtech eco-system and he added: “We are very interested in the start-ups. Our partner Aviva focuses on this issue and we have good synergy. We positioned AvivaSa Digital Garage as a door opening to the Innovation and Entrepreneurship World of AvivaSA.”

Fırat Kuruca also mentioned that the customer orientation and digitalization are the essential elements for survival of the companies and ended his speech as follows: “Today, companies that quickly adapt to the new technologies and make a difference in the lives of their customers and personnel stand out. Our sector, which sometimes the scene of 50 to 60-year long customer relations, touches and is intertwined with human lives for vital needs such as assurance for the future and present”.