Transcript Document
TURKISH MARINE INSURANCE MARKET
Yeşim Denizli Vice Chairman, Marine Committee Marine and Liability UW Group Manager, Groupama May 29th 2015
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MARINE INSURANCE COMMITTEE
11 members
Meeting on a monthly basis to discuss issues relating to local market as well as marine insurance industry in general
Serving as a consulting body for all marine insurance practitioners
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OBJECTIVES OF THE COMMITTEE
Promoting good practice in profession Monitoring key developments and issues relating to marine insurance Providing recommendations to the market Sharing experience and best practice Facilitating preparation and revision of legislation, general conditions of marine insurance policies, working guides Conducting studies and research on sectoral problems
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TURKISH MARITIME INDUSTRY
DEVELOPMENT OF TURKISH OWNED MERCHANT FLEET OVER 1000 GT
2003 2014
Number of vessel 569 1489
2014 Number
Total DWT Rank in world fleet 19 8.9 M
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19 17 30.4 M 13
17 8,9 billion 30,4 billion
Replacement of old coaster fleet supported by Turkish Government Development of bluewater hull as a result of the newbuilt projects 4
TURKISH MERCHANT FLEET
Improving performance of Turkish flagged vessels In White List regarding Paris MoU PSCs since 2008 In 2014, maintained place on White List by achieving a low detention ratio, i.e. 4,5% Maritime administration is making every effort to preserve our fleet’s high quality and aims to upgrade its place on the white list.
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TURKISH SHIPBUILDING INDUSTRY
Number of yards Total DWT capacity
2003
37 73
8 billion 30,4 billion
Turkey is ranking on the third place relating to megayacht order in the world. Some yards are switching from newbuilding to maintenance and repair activities after crisis. 6
YALOVA TUZLA
SHIPYARDS
ALİAĞA RECYCLING 22 73 SHIPYARDS 7
TUZLA REGION
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TURKISH PORTS
Operator
Government Municipality Private
Number of Ports
22
2014
23
550.000
90% of goods (import-export) are maritime transported in Turkey.
6 ports are operated by Turkish Maritime Administrations.
3 out of 7 railway connected ports are operated by Turkish State Railways.
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CONTAINER HANDLING PORTS
3 container terminal projects on Black Sea, Mediterranean and Aegean Sea After new port investments, Turkey’s existing 11.1 million TEU capacity is expected to reach 21.6 million TEU. 10
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MARKET PLAYERS IN MARINE INSURANCE
Insurance market Marine 39 Non Life + 1 P & I 32 Cargo 27 Hull/Yacht 33 companies are actively operating in Marine.
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PREMIUM INCOME
Premium ( TRY) 600 000 000 500 000 000 400 000 000 300 000 000 200 000 000 100 000 000 0 Source: TSB Statistics 2009 2010 2011 2012 2013 2014 Hull Cargo 13
PREMIUM INCOME
Premium ( USD ) 250 000 000 200 000 000 150 000 000 100 000 000 50 000 000 0 Source: TSB Statistics 2009 2010 2011 2012 2013 2014 Hull Cargo 14
TRENDS
Cargo market
Development in premium income as a result of increasing trend of export and increase in rate of currencies Hull market
Increase in number of yacht policies but 7 % decrease in total hull premium income in 2014 Increasing demans on yacht insurance has a positive effect in 2015, and market realised 7% real increase.
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GROSS LOSS RATIO
Loss Ratio (%) 120,0% 100,0% 80,0% 60,0% 40,0% 20,0% 0,0% 2009 Source: TSB Statistics 2010 2011 2012 2013 2014 Hull Cargo 16
NET TECHNICAL PROFIT/LOSS
Technical Profit (TRY) 180 000 000 160 000 000 140 000 000 120 000 000 100 000 000 80 000 000 60 000 000 40 000 000 20 000 000 0 -20 000 000 Source: TSB Statistics 2009 2010 2011 2012 2013 2014 Hull Cargo 17
NET TECHNICAL PROFIT/LOSS
Technical Profit (USD) 80 000 000 70 000 000 60 000 000 50 000 000 40 000 000 30 000 000 20 000 000 10 000 000 0 -10 000 000 Source: TSB Statistics 2009 2010 2011 2012 2013 2014 Hull Cargo 18
ANADOLU ERGO ALLIANZ HDI AXA MAPFRE GROUPAMA EUREKO GÜNEŞ AK
TOP 10 PLAYERS IN 2014
Market Share (%) 21 8 8 8 7 6 5 5 5 5 19
SHARE OF DISTRIBUTION CHANNELS
AGENCY BROKER DIRECT CLIENT BANK OTHERS Source: TSB Statistics
Share (%)
56 24 8 7 5 20
THREATS
Low global growth potential
Economic difficulties in EU countries
EU, UN and other sanctions
Political disorder in Ukraine, Middle East and North Africa
Price competition
Low values of vessels
Under utilised shipbuilding industry
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Thank you...
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