Nart News

                                                                  January/February 2015

No:12

 
 
     
 
  The premium production of 2014 is out now: Life and automotive held back the growth

In 2014, the growth in the insurance sector fell short of the inflation. The most significant factor behind this regression was the 3.45 percent drop in the life insurances and 1.19 percent increase in the comprehensive insurance and 2.6 percent increase in the traffic insurances.

The premium production for 2014 has increased by 7.05 percent compared to the previous year and reached 25 billion 938 million Turkish liras. The 22 billion 660 million TL part of the production has been received from non-life insurances and the 3 billion 278 million TL part from the life insurances. The annual increase for the elementary insurances has been 8.77 percent and there was a drop of 3.45 percent for the life insurances.
According to these results, the growth in the insurance sector fell short of the inflation rate. According to the Turkish Statistical Institute data, for year 2014, the CPI was 8.17 and DPPI was 6.36.

ENGINE HAS STOPPED
The motor insurances have marked the premium production for 2014. These branches, which were the driving engines for this sector in the previous sectors, have almost stopped in 2014. The increase for the land vehicles (motor insurance) was 1.19 percent and the increase for the land vehicles responsibility (Traffic) was 2.6 percent. The rates of increases according to the branches were 14.9 percent for fire and natural disasters, 16.3 percent for accidents, 17.6 percent for transportation, 11.2 percent for general damages, and 24.2 percent for general responsibility.

PRODUCTIOON WITH RESPECT TO THE COMPANIES
For the premium production in 2014, Allianz, which has incorporated Yapı Kredi Insurance, has become the first company for the first time with 3 billions 216 million TL. It was followed by Axa Insurance with 3 billions 78 million TL and Anadolu Insurance with 3 billions 4 million TL. There were seven companies, who have joined the billionaires club, in 2014.

Ziraat Life and Retirement has been the company, who produced the most life insurances with production of 606 million TL and it was followed by Anadolu Life and Retirement, and Allianz Life and Retirement with 330 million TL.

 

 

  NART In its New Headquarters

Nart Brokering has moved its headquarters to its 10-floor plaza on the Orhan Veli Kanık Street in Kavacık Centre. NART shall continue carry out its relations with its 8 service centers and its partners in 130 countries in its new headquarters covering 2500 m2 indoor space.
 

 

 

  eOfis, who is among the leaders of Ready Office Sector, and NART Business Center have joined their forces

eOfis, who was founded in 2009 in the Ready Office, Virtual Office and Training/Meeting Room leases, operation and infrastructure sectors, and within 5 years has started to provide service in 8 different locations in İstanbul, and NART Business Center, who offers its services in a 5000 m² area for 4 years now in the Levent POL Center, which is one of the most prestigious locations in Istanbul, have decided to collaborate under the brand "NART by eOfis".

With this collaboration, the two strong brands of the sector shall continue to provide Virtual Office, ready Office, Meeting and Training halls leasing at 9 centers covering 15.000 m². The brand, with this collaboration, aims to grow by opening new offices in Kavacık, Şişli and in the cities, which attract the attention of the investors.

 


Ready Office, Virtual Office, Legal Address Accommodation and Training/Meeting Halls services offer the opportunity to the establishments to carry out their businesses at prestigious locations by reducing the office costs by offering them flexible contract terms and pay-as-you-stay options. With this system, which is quite common abroad and which has become increasingly demanded in the last 5 years, the establishments shall have the opportunity not only to carry their businesses with cost advantage but also to avoid the office operations and work on a mobile platform.

Today, the time lost for commuting and mobile/flexible ways of working prompts the large corporations to set up satellite offices. NART by eOfis offers the large corporations flexible solutions concerning this matter with its pay-as-you-go system and satellite office uses. The large corporations, with the satellite office, offer their employees work in 9 different locations in İstanbul.

NART by eOfis carries out its activities in nine different locations as Yeşilköy World Trade Center EGS Business Park (7 loc.), Ataşehir Flora Suite Office (3 loc), Taksim İstiklal Street, Bakırköy Garden Office Marmara Forum AVM, Kartal Hukukçular Towers, Gayrettepe Oyal Business Center, Maslak Beybi Giz (2), Akasya Tower Residense (2) and Levent Pol Center.
 

 

  NART Insurance Foreign Participation

NART Insurance Chairman of the Board, Levent Nart, has given a speech titled “The position of Turkey in the Near and Middle East and its insurance market” on 30 June 2014 at the international German Brokers Network Trust Risk in Hamburg to more than 120 participants from 45 countries.

In addition to this, he gave a speech titled “The Insurance Sector in Turkey and the Activities of Nart Insurance in the Near and Middle East” at the 3-day Global insurance Conference held between 8-11 October 2014 in Venice at the Venice Hilton Ballroom named Brokerslink to 260 participants from 80 countries.

 


The largest independent insurance and reassurance brokers NART represents both of the global organizations in Turkey.

 

 

  NART INSURANCE ADVISORY COMMITTEE MEETING has been held at The Ritz-Carlton Hotel under the presidency of Mr. Yavuz Canevi

"NART shall be the number one local player in Turkey and in the region."

 

In the meeting, whose opening speech was given by NART Insurance and Reassurance Brokering Chairman of the Board and CEO Levent Nart, the Head Economist of the Presidency Mr. Durmuş Yılmaz gave a presentation on the state of the Turkish economy after the crisis titled "Where and How after the Transition to a Strong Economy Program”.

Levent Nart, has also announced the names of the two new members to NART Advisory Board Committee. He stated that Duravit Board Member Mr. Müfit Ülke and AVM MFI Partners Chairman of the Board Mr. Aydın Yurdum henceforth would be the members of NART Advisory Board. NART Advisory Board has 19 members among whom there are the Presidents of the significant Holdings and Establishments of the Global and the Local Market, and CEOs.

Mr. Levent Nart, who introduced the new members to the audience in the meeting, expressed his forecasts for the future of the insurance sector by comparing the data for 2013 – 2014 on the global scale and for Turkey in particular. Mr. Levent Nart stated that the premium increase on the world insurance sector for 2013 was 2,9 percent, however, this ratio was 8,8 percent for the Developing Countries. Nart continued his speech saying, "Turkey has a significant position among the Developing Countries. The premium production in Turkey in 2013 has occurred as an 1,6 percent increase in the real premiums.

Levent Nart shared this information on the growth of NART Insurance and Reassurance Brokering with the audience: "Our profitability has increased in 2013 approximately by 51 percent. Our objective is to become the number one local player in Turkey and in the region, and to keep this position. We would like to be the leader of the niche market and introduce new products to the market."
 

 

 

  Insurance and Reassurance Sector Expectations for 2015 of our Chairman of the Board, Levent NART
 

As it is known, according to the data of the Insurance Association of Turkey, in 2014 the sector has grown by 7,26 in the 12-month period compared to the same period in the previous year. When evaluated net of inflation, the sector has contracted in real terms. The most significant factor in this contraction was the drop of 3.45 percent in the life insurances, the increase of 1.19 percent in the motor insurances and the increase of 2.6 percent in the traffic insurances.
For 2015, the level of the rate of growth of the sector shall be determined by the performance of the Turkish economy.
The year 2015 shall be another difficult year for the economy. First, it is expected that the USA Central Bank shall increase the interest rates. Moreover, the crisis in Russia caused by the drop of the oil prices had a negative impact on Turkey, and depending on the fluctuations in the financial markets, the American dollar has reached the level of 2.51 TL in the domestic market.
Despite all these negations, the representatives of the sector expect the car sales, which have remained low in 2014, to increase in 2015. Moreover, if the topics under the 'Motor Insurances Project' of the Insurance Association of Turkey are put into practice, this is expected to have a positive impact on the performance of the insurance coverings and traffic insurances. In the light of all these, the sector is expected to have a rapid and real growth in 2015, even if it cannot show the same performance it did in 2013.

Axis Capital and Partner Re have entered into a collaboration of 11 billion dollars and as a result, the world’s 5th largest reassurance company was born. The company, which shall emerge after the collaboration, shall be the 5th largest reassurance company along with the French Scor.

XL Group has purchased Catlin for 4.1 billion dollars. The company, which shall carry out its activities as XL Catlin, has become one of the top ten reassurance groups in the world with its 10 billion dollarnet premium production and a net reassurance premium production of more than 3 billion dollars.

 

  NART raises the bar in the Leader Service Quality thanks to the Internal Trainings 

Nart Brokering provides continuous trainings to its employees on the most recent legal and sectorial applications with its Continuous Training Philosophy. At these trainings, the company continues to improve the knowledge level of its entire staff in order to be at the best knowledge level in the sector with the trainings given by the internal and external instructors.

 

 

  Supplier and Consultation Meetings with NART Insurance Companies

At the usual Insurance Companies and Supplier Meetings held by Nart, an evaluation was made for 2014 and productive meetings on the trends, risks and price levels that are expected for the sector and the insurance buyers in 2015 were held, and the necessary precautions were taken in order to be able to offer the customers the most comprehensive insurances in terms of price level that shall not contradict the revenue targets of Nart.

 

 

  NART Difference in the Management of the Claim Risks

NART, who implements the Commercial Claim Insurance within the scope of the broadened special conditions, uses its knowledge filtered through its more than 25 years of experience and its powerful relationship with its international partners for you.

Today, as the trade is more globalized, the risks faced by the business world are becoming more complex and vital. The national and international economies, which are subjected to continuous changes, might leave the companies facing commercial risks, which cannot be foreseen beforehand.

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The commercial claim insurance protects your company against the risk of non-payment of the commercial claims and provides assurance for your company against two main risks:

  •  Against Commercial Risks in your domestic or export sales, bankruptcy, late payment

  • Against the political risk, war, embargo and not having enough fund transfer for your export sales, the risk of the public buyer not to pay.

The advantages of the Commercial Claim Insurance service:

  • It renders the risk of non-payment traceable and measurable with the risk analysis and the risk tracking..

  • If your claim is not paid, all the legal costs for the collection and tracking of the claim shall be borne by the insurance company without any additional cost for you.

  • It provides amelioration of your buyer portfolio by examining the credibility of our potential customers and constantly keeping the existing risks the under supervision.

  • It can use financing or pre-financing by collateralizing its credit insurance standing as the security before the bank or other financial institutions.

NART Insurance and Reassurance Brokering Inc. was found in 1999 and it has attained the success of being the largest independent brokering in Turkey with its 100 employees and 70.000 customers. Together with our international business partners, we are at your service for your activities beyond the borders with our 30.000 risk specialist in more than 120 countries of the world.

We would like to express our wish to visit you with our expert staff in order to provide you with more detailed information concerning the credit insurance, which offers solution to all commercial establishments for the serious risk of not being able to collect the claims.
 

  Surety Bonds are opening a new era

What is a Surety Bond?

This insurance product, which is referred as the "Surety Bond" or "Bonding" in the international terminology, is equivalent to the letter of guarantees issued by the banking system. The establishment (insurance company), which provides the Surety Bond, is giving the guarantee to the claimant/employer the payment of the relevant contract amount against the risk of the debtor not being able to fulfill his obligation arising from the contract and/or the law.

It is widespread in America, Europe and Asia Pacific. All of the letter of guarantee need in the USA market is met by the insurance companies, while this rate is 95% for the South America, 25% for Europe and 50% for Asia Pacific. Although the bonding are mostly used for the construction, manufacturing, construction and repairs, energy and infrastructure projects, there are demands from almost all sectors.

We, as Nart Insurance and Reassurance Brokering, provide consultancy services to our customers for the guarantees listed below for the offers to be received from Turkish and Foreign Insurance companies and the content of the letters, the inspection of the damages and all demands, and the running of the negotiations.

 Participating in the Bidding (Temporary) Guarantee : It provides guarantee against the risk of the Master to leave the bidding before the completion of the bidding, to withdraw from signing the bidding contract, not to offer the guarantees he is supposed to offer.


Advance Payment Guarantee : It provides the guarantee against the risk of non-payment of the advance payment(s) made by the Beneficiary to the Master due to the Master not being able to fulfill his obligations to the beneficiary.
 
Performance Guarantee : It provides the guarantee for the risk of the Master not being able to fulfill the requirements of the business in accordance with the conditions stated in the contract.


 Production/Maintenance/Care Guarantee : It provides guarantee against the losses surfacing from the business performance evaluations such as construction, engineering, machine production.


The Surety Bond product is translated into Turkish as “Kefalet Sigortası" and it has become effective with the issue of the Surety Bond General Requirements by the Treasury Under secretariat dated February 2014, and the official declaration in the official gazette numbered 29136 and dated October 2014.

 

  NART is increasing its efficiency within Turkey with the addition of new regions

In 2014, first the office in the Erbil region in North Iraq, followed by our Diyarbakır and Adana Regional offices have been opened. As NART, we are proud to offer you the most professional risk management and insurance services for your corporate and individual needs, from the West to the East of Turkey.

                           

  The Construction Completion Insurance General Conditions for Turkey is coming soon

In line with the laws issued on the Protection of the Consumer, some new sanctions for the construction companies who realize their housing sales from the models have been set. In the fifth section of the article Rules for the Guarantee concerning the regulations for the Prepaid Housing Sales dated 27 November 2014 and numbered 29188 it is stated that before the sale of the housing starts it is now required to provide guarantee for the housing units, which are equal to or more than thirty. According to the relevant article, it has become mandatory to provide one of the guarantee instruments listed in the article such as construction completion insurance, letter of guarantee from the bank or the guarantees provided by the progress billing system or tied loans. Regarding the Construction Completion Insurance, the insurance companies are expected to be in the market with products and guarantees after the issue of the Construction Completion Insurance General Conditions for Turkey, which is still in the draft stage.
 

 

As NART Insurance and Reassurance Brokering, we shall be in the market with the products after the issue of the final version of the Construction Completion Insurance General Conditions for Turkey for our existing customers and all the investors in the Construction Sector.
 

 

 
     

NART Insurance & Reinsurance Brokerage Inc.

www.nart.com