TURKISH NATURAL CATASTROPHE INSURANCE POOL...Jun 23, 2015  · DASK - TURKISH NATURAL CATASTROPHE INSURANCE POOL www .dask.gov tr $39 $33 252,467 $55 $22 1,308,985 $52 222,467 $49

May 2010, ISTANBUL

TURKISH NATURAL

CATASTROPHE INSURANCE

POOL

Menekşe Uçaroğlu IUC Group

IIF 2015 Munich

HISTORY

The devastating Earthquakes in Marmara region on 17th August and 12th November 1999

Insured loss: around USD 800 milion

Economic loss: over USD 10 billion

Low insurance penetration (especially for residential risks)

Burden on public budget

Decree law no 587 – compulsory earthquake insurance as of 27th September 2000 untill 18th of August 2012

As from 18th August 2012 new 6305 Catastrophe Insurance Law

PRE-TCIP

WHY

Reactive solutions versus proactive solutions

Shortage of funds in immediate need

Allowance of funds to those in need is problematic

Political and bureaucratic considerations may prevail

Government priorities is on getting back to economic and social life

GOVERNMENT’S PRIORITIES

A compulsory earthquake insurance system for homeowners

Affordable price for every homeowner

True risk transfer mechanism

Claims-paying capacity to limit government’s exposure

Build national catastrophes reserves by time

improvement of risk culture and insurance consciousness in public

Rely on distribution channels of Turkish insurance industry

ESTABLISMENT OF TCIP

LEGAL AND FINANCIAL BASE OF TCIP

Financed by Marmara EarthquakeEmergency Reconstruction Projectco-financed by

Turkish GovernmentWorld BankEuropean Bank for Reconstruction and Development

Decree law no 587 – compulsoryearthquake insurance as of 27thSeptember 2000.Eureko Sigorta is tendered for thefollowing 5 years till August, 2015As from 18th August 2012 new6305 Catastrophe Insurance Law

PUBLIC-PRIVATE PARTNERSHIP

NOWHEREWITHOUT

TECHNOLOGY

WAN

J2EE APPLICATION

SERVER

J2EE APPLICATION

SERVER

ORACLE DATABASE

LDAP

J2EE APPLICATION

SERVER

LDAP

ORACLE DATABASE

DMZ

WEB SERVER

FIREWALL

DMZ

WEB SERVER

FIREWALLDISASTER RECOVER CENTER

TCIP

CENTER

CALL CENTERCOMPANIES

L LINE

INTERNET

İSTANBUL ANKARA

16 MILLIONHOMEOWNERS

THE TREASURYGENERAL DIRECTORATE OF

INSURANCETCIP

BOARD OF DIRECTORS

INSURANCE COMPANIES

REINSURANCE

IT

FUND MANAGMENT

AGENCIES BROKERSBANC

ASSURANCEDIRECT & ADC

CONTRACTUALAGREEMENT

PR

CLAIM OPERATIONS

CLAIM

MANAGEMENT COMPANY

• State of the art technology• 99,9% service level• Investing into satellite and mobile

technologies• Continuous improvement• Various level Back-up services, data and

programs• Disaster Recovery Center is able to be in full

operation within 2 hours

BASICS OF DASKPUBLIC AND

PRIVATE PARTNERSHIP

30.000 POS

SINGULARITY AND SIMPLICITY

PROPERTY

EARTHQUAKE

RESIDENTIAL BUILDINGS

DASK

LINE

PERIL

RISK

PROVIDER

ONLY EARTHQUAKE

ALL BANKS AND AGENCIES

3 PRICING FACTORS

FEW INFORMATION

TO UNDERSTAND

TO ACCESS

PRICING

CLICK PRODUCT

JUST CALL 125CLICK POST-SALES OPT

PRODUCT CONCEPT - SINGULARITY

PRODUCT FEATURES - SIMPLICITY

SCOPE OF COVER AND TARIFFICATION

TYPE OF CONSTRUCTION

Zone1

Zone2

Zone3

Zone4

Zone5

Steel, RC 2.20 1.55 0.83 0.55 0.44

Masonary 3.85 2.75 1.43 0.60 0.50

Others 5.50 3.53 1.76 0.78 0.58

TYPE OF CONSTRUCTION

UNIT ONSTRUCTION COST PER M²

Steel, RC 700 TL

Masonary 500 TL

Others 260 TL

TYPE OF CONSTRUCTİON

SUM INSUREDTURKİSH LİRA

Zone1

Zone2

Zone3

Zone4

Zone5

Steel or R/C 70.000 164 119 68 49 41

Masonary 50.000 203 148 82 40 35

Others 26.000 153 102 56 30 25

Prices for a 100 square meter dwelling (TL)

SIMPLE TARIFF

• Earthquake Zone

• Construction Type

• M² of apartment

SCOPE OF COVER

Only Earthquake and following

•Fires

•Explosions

•Landslides

•Tsunami

INSURABLE PROPERTY

Only Building

• No contents

• No BI

IMPROVED PENETRATION

FROM

4% TO 40%

SUSTAINED LOW PRICES

LESS THAN

€ 40ANNUAL PREMIUM

12 MİLYAR TLÖDEME KAPASİESİ

ACHIEVEMENTS

INCREASED PUBLIC AWAIRNESS

OVER

90%BRAND AND PRODUCTRECOGNITION

RELEASE ONNATIONAL BUDGET

€ 4.4 BILLION

CLAIM PAYMENT CAPACITY

LOW OPERATIONAL COST

LESS THAN

3%

EFFECTIVE PUBLIC-PRIVATE PARTNERHIP

HAS BECOME

A GLOBALROLE MODEL

OVERALL 40%

938,457

763,075

DASK - TURKISH NATURAL CATASTROPHE INSURANCE POOL www. dask.gov.tr

$39 $33

252,467

$55$22

1,308,985

$52

222,467

$49

2,999,067

$39

525,038

VARYING REGIONAL PENETRATION / LOW COST ACROSS THE COUNTRY

DASK IN THE FUTURE

HAVING ROBUST PLATFORM

DEVELOPING CONTINGENCY

RESOURCES

IMPROVING COORDINATION

USE OF HIGH END TECHNOLOGY

7.5 MILLION POLICIESIN 2015

10 MILLION POLICIES2017

EFFECTIIVE USE OF CHECK POINTSUSE OF IMPROVED METHODOLOGIES AND RISK REDUCTION

STUDEIS

STRONG COORDINATION WITH STAKE HOLDERS AND CONTINOUS PUBLIC RELATION ACTIVITIES

INCREASING PENETRATION IMPROVING CAT MANAGEMENT

LESSONS

Operational capacity is as important as financial capacity

Outdated operational manuals

Procedures must be simple and lean

Application of sum insured or indemnity limits

Necessity for collaboration between;

Industries

companies and public offices

cities-countries

Lack of;

adjusting capacity

technology

Field knowledge

LESSONS

Less loss of lives in the countries with stringent building codes (Chile and New Zealand)

Multiple events are not unusual (1999 Turkey and 2011 New Zealand)

Secondary risk causing severe damages (tsunami, liquefaction, nuclear damage)

Modeling has it’s limitation

Underestimated scenarios

Economic

Political

Demographic

Ambiguity on expectations from insurance industry

Importance of strong construction industry

Need for more involvement of Government support

NEW ERA IN CAT MANAGEMENT

o 12.01.10 7.0 Haiti Earthquake

o 27.02.10 8.8 Chile Earthquake

o 04.09.10 7.1 New Zealand Earthquake

o 11.01.11 Australian Flood

o 11.03.11 8.9 Japan Earthquake

o 22.02.11 6.3 New Zealand Earthquake

OPERATIONAL CAPACITY

AS IMPORTANT AS FINANCIALo 23.09.2011 Van Earthquake

o 09.11.2011 Van Earthquake

o 2012 Kütahya Earthquake

JAPAN MODEL NEW ZELAND MODEL

DASK’S STRATEGY FOR THE FUTURE

EXPERIENCE GAINED IN TURKISH EARTHQUAKES

LESSONS

When to start claim adjusting; after rescue operations oraftershocks

How important to have continuous observation on damagedevelopment of on the field because of after shocks

Appointing adjusters to the building not to the policies How important to have standard, simple and transparent

adjustment To have fixed construction cost tables for claim adjusters Adjustment of common areas of the buildings Difficulties in logistics and housing of the claim adjusters Claim adjusters reluctance on leaving in the earthquake

area. Public offices, such as Municipality and Land Register

Offices, being un-operational due to physical damage orloss of lives Unavailability of construction capacity in theregion

Public confusion on claim adjustment due to Government’sdamage assessment activities.

Public prosecutors and mortgage holders' discretion on theclaim payments.

Low sum insured on the policies Physiological trauma causing people to leaving the city, Confusion on address information Lack of engineering knowledge of the professional claim

adjusters Lack of coordination with insurance companies

VAN EARTHQUAKE

TOTAL NUMBER OF CLAIM NOTIFICATION 8.701

TOTAL PAID CLAIMS 7.000

TOTAL PAID AMOUNT 123.000.000

JUSTIFIYING TCIP’S SUM INSURED

TOTAL NUMBER OF TOTAL LOSSES 1.289

TOTAL PAID 75.639.234

TOTAL SUM INSURED 99.043.410

DIFFERENCE 24%

%24 EXACTLY SAME FOR SIMAV EQ

SOCIAL OBJECTIVES

INSURANCE PRINCIPLES

CAT MANAGEMENT PLATFORM

Uydu Görüntüleme ve Fark Algılama

İB1_D

AS

K İnte

raktif

İB2_O

pera

syonel

Veri

mlil

ikİB

4_H

asar

Yönetişim

2. Ç 3. Ç 4. Ç 5. Ç 6. ÇİB Proje 1. Ç

P1

P2

P3

P4

P5

P6

İB3_E

tkin

Hazır

lık P7

P8

P9

P10

P11

P12

İTÜ

Onay

Birim

Maliyetlendirme

İzmir

Tasarım Algoritma

Hasar

Kategorizasyon

TOBB Eksperleri

Bilgi Dosyası Yeni Eksper Bilgi DosyasıÇŞB, AFAD, Üniversiteler ve Mühendislik Odaları ile Görüşmeler

Eğitim İçerik Yönetimi ve Organizasyonu

Konsolide Veri Modeli İş Kuralları ve Kontoller

Saha LojistikAlternatifli Aksiyon Planlaması

Saha Organizasyon Modellemesi

Banka / PTT ile MutabakatÖdeme Uygulaması

IVR

Sigortalı ve Aday Sigortalı Mobil Uygulaması

Sigortalı Portalı

Modelleme (BOUN)

Hava ve

Sokak Görüntüsü

Mobil Eksper Uygulaması

Analitik Kapsamı

ve Analizi

Nakit Akış Planlaması

Hasar Uygulaması **

2014* 2015*

Program Planlaması

ve Mobilizasyonu

Proje ekiplerine bilgi aktarım ve

kapsam detaylandırma workshop’ları

Program Yönetimi; Değişim ve İletişim Yönetimi

Veri Ambarı Senkromizasyonu ve Optimizasyonu (Tasarımların tamamlanmasını takiben)

Veri Modelleme, BT Altyapı ve Mimari Değerlendirme Workshopları (Program boyunca)

Öncelikli Veri

Temizliği

AFAD, ÇŞB ile ortak kaynak kullanımı ve/veya

ortak eğitim kapsamının ve planının oluşturulması

Eğitim StratejisiEğitim Sertifikasyonu

Geocode

Eğitim İçerik Güncellemeleri

Hasar KPI

ve SLA’ler

Eksper KPI

ve SLA’ler Hasar

Dashboard

Eksper

Dashboard

Haritalandırma ve Etki Tahminleme Poliçe Entegrasyonu

Hasar Kategorizasyon

Modülü Güncellemesi

HızlandırılmışBaşlangıç

P13

Eksper Dashboard

Güncellemesi

Üst Yönetim Raporlama

,U

Raporlam

a v

e D

ata

Ware

house

Dış

Entegrasyonlar

E-Posta

Posta

Çağrı

Merkezi

IVR

Web Portal

Mobil

Telefon / Fax

İhbarDosya

DeğerlendirmeRücu/Sovtaj

Dosya NotlarıHasar

Kontakları

Şablonlar

SuistimalPatternler Ödemeler Tahsilatlar

Limit

Muafiyet

Muallak

Yönetimi

Eksper & Performans

YönetimiE-posta / SMS Görevler Raporlama Konfigurasyon

Hasar Destek Fonksiyonları

Hasar Yönetimi Finansallar

Hasar Uygulamasıİletişim

Kanalları

Çıktı

Poliçe Sistemi

Ödeme SistemiReassürans

Sistemi

Risk Yönetimi

Skorlama Sistemi

İç EntegrasyonlarMaliyetlendirme

Sistemi

Modelleme ve Tahminleme

Uygulaması

Poliçe

Sistemi

Ödeme

Sistemi

Analitik ve

Veri Madenciliği

Muhasebe

Sistemi

Risk Yönetimi

Skorlama Sistemi

Döküman Yönetimi

Arşivlemeİş Süreç/Akış

Yönetimi

Olay Tanımlama

Coğrafi Bilgi

Sistemleri

Dönüşümler ve

Haritama

Modelleme ve Tahminleme UygulamasıMaliyetlendirme Sistemi

Maliyetlendirme

Standardizasyonu

Maliyetlendirme

Kategorizasyonu

Analitik ve Veri

MadenciliğiPerformans ÖlçütleriVeri Madenciliği

Muhasebe SistemiÖdeme Sistemi Reasürans Sistemi

Hasar Uygulamasını Destekleyen Uygulamalar ve Kurumsal Uygulamalar

Web Satış

(Vizyoneks)TAPU

Elektrik Su

DairesiUAVT

Sigorta Şirketleri

AcentelerE-Devlet

Portföy Yönetim

ŞirketleriTOBB

Banka

PTTTAPU

AFAD

CBSVEDOP UYAP

Kandilli

Sistemi

Eksper Yönetimi

• DASK designed the cat management structure with improved procedures and new model

• Accenture’s study justified the target model and provided implementation plan.

• DASK preferred to built it’s model on the renown platform, SAP

• Local partner, Vizyoneks, is integrating and developing the application together with SAP

• IBM is the program manager and business modeller on behalf of DASK

DASK CLAIM ADJSUTMENT PRINCIPALS

BEFORE EARTHQUAKE

IMMEDIATELY AFTER EARTHQUAKE

SHORTLY AFTER EARTHQUAKE

EARTHQUAKE OPERATION

EXCEL ON MODELLING

EXCEL ON ESTIMATION

EXCEL ON DESKTOP LOSS ASSESMENT

EXCEL ON CLAIM ADJUSTMENT

T -1

T 0

T 1

T 2

WHY AND HOW TO INTEGRATE GIS TECHNOLOGIES

AFTERSHOCKS EXCEL ON TRACKING THE FIELD

T 3

CONTINUES COMMUNICTION AND PUBLIC RELATION

CONTINUES COMMUNICTION AND PUBLIC RELATION

May 2010, ISTANBUL

TURKISH NATURAL

CATASTROPHE INSURANCE

POOL