In Turkey insurance market is really controversial and difficult to ensure stabile maintenance. Because although it seems there are only two players in comparison to the other countries’ system: agents and insurance companies; In Turkey it is three big players; there’s third actor which is government (on rules and ragulations basis)
About the “hot topic” compulsory traffic insurance every day premiums are changing coverages staying the same but the demand is changing. Being in the sector for seven years I can easily say that insurance sector needs stability because depending on the input variables for pricing there are two contrasting views about setting the fixed-price or letting the Adam Smith’s “invisible hand” approach in and let the private sector decides on the pricing.
Naturally, insurance companies do not want and trying to not to approve the fixed price on TPL, due to maintenance of damage claims levels especially in the motor insurances branch.However government used the whole sectors bleeding organ for the election policies. They have decided fix the prices same rate for people. We as the agencies were shocked and affected negatively because one day it’s the open market, the other day it’s regulated by government and also the promises that we gave to our customers for motor insurance quotes changed in a day; so consumers; insurance consumers especially lost their approach and they are not trusting the market no more because they know and (more sadly) we know nothing is predictable .Hence; unpredictability is frightening the foreign direct investors and customers and also us because we don’t know what we will be facing in next years .
On the oe hand; complications resulting from the clash of governmental pricing policy and the necessities of free (supply&demand intersection should etermine the right Premium for any kind of the insurande branch.), on the other hand; there’s another interest of digitalization! However, when Turkey’s geopolitical place is taken into the consideration; mediterranean culture requires one to one face-to-face relationships about deciding to delegate your risks. And this attitude is certainly understandable because they want to see, they want to feel, they want to be sure about where they are paying the premiums and how will they get help in case of damage occurrence. As a result; price aggregators, brokers or online sales will only get not more than 5% of the whole sector profit because human nature is hard to change although the new wave the youngsters like to buy things from online but they are easily consumed try and return back products. However when the issue comes to returning the service back and paying back that you are actually paying to the paper and I promise it’s really comes to how you manage your service processes as an agent we are operating very effective because we have departmentalized we have damage claim service a different part which is working there specifically just for the happiness and success fictional our insurance customers because what we need is; to be noticed and to get want to be paid and to be taken care of and we are doing this initial sector if you were just a call Center and not a place to buy Sam and consult your customers it’s just not going to work in Turkey. policyholder holder, lawmakers , Insurance buyers insurance sellers we are all connected and we should really be in teamwork the insurance companies should always work align with agencies the sales part of the tour part because we are the voices of policy buyers VR the voices of people and VER the examiner part of the demand so insurance companies should base their policies and strategies on agents this is the key to grow in Turkey and have a share in Turkish Insurance market. Thank you for reading for any questions I’ll be more than glad to answer.