Aksigorta Annual Report 2019
Management’s Assessment
A focus on customers, innovation, analytics, artificial intelligence and new technologies continued to be among the priority investment areas in 2019.
Staying aware of our customers’ needs and taking steps that deliver new products and services, we have aligned our business with technology.
4,474
(TL million)
Aksigorta premium production
+2
million
Transactions made with ADA in 2019
Esteemed Shareholders,
As we look at the economic developments of 2019, we can see that the uncertainties generated by trade disputes have had a significant impact on the global economy. Following the inclusion of Chinese companies on a blacklist declared by the United States, the USA-China talks, which started on a negative note, concluded in October with a partial agreement. At the same time, as continuing concerns regarding economic activity put negative pressure on oil prices – and predictions that trade disputes could drive global growth to its minimum level since the global crisis - the IMF revised its 2019 projections downwards due to the decrease in production and investment. The IMF increased its predictions for Turkey’s economy, from 2.5% to 0.2% for 2019, and from 2.5% to 3% for 2020. Starting to shrink on an annual basis since the last quarter of last year, Turkey’s economy resumed growth in the third quarter of 2019. An analyzation of GDP data according to production method suggests that only the construction sector limited growth in the third quarter, while all other items drove GDP upwards. Reducing its 2019 inflation prediction to 12%, the CBRT suggested that inflationary trends would see significant improvement and cited downward updates in import prices and food prices as the reason for this revision.
Expanding in the financial, health and cyber insurance areas, despite a contraction in the automobile sector, the insurance sector maintained its growth in 2019 as well. More than 50% of the premium income in the insurance sector came from MOD and traffic insurance, while shrinkage in vehicle sales affected the sector negatively. However, certain areas that are dependent on foreign currency, such as engineering and transportation, maintained total growth by sustaining the sector; health, supplementary health and liability insurance were among the other areas of growth.
Cyber Protection Insurance
As the sector extends into new areas and new products, areas of risk have also expanded to include intellectual property, databases, digital networks, intangible fixed assets and global warming. Threats posed by cyber-attacks to institutions are also proliferating. As a natural extension and solution, cyber risk insurance has become a USD 5 billion market worldwide: this figure is expected to reach USD 7.5 billion by the end of 2020.
As well, heightened risk perception due to the Law on the Protection of Personal Data - and the consequent necessity for companies to have a solution regarding the transfer of these risks - increase the demand for cyber insurance. As Aksigorta, we provide protection against data violations and subsequent sanctions that could be imposed, due to the Law on the Protection of Personal data, with our Cyber Protection Insurance. In addition, we provide comprehensive coverage, within the scope of the product, ranging from cyber blackmail to media liability and from business interruptions to cybercrimes.
Customer-Oriented Insurance Approach Developed with Technology
In the 200-year-old insurance sector, it is important to respond to customers’ needs: traditional products are enhanced, and new products are developed to address the latest risks. While this transformation motivates the insurance sector to constantly renew itself, the spread of digitalization across all aspects of life has driven a process of change via technology, as in all sectors.
By remaining attentive to the needs of our customers, we take steps that deliver new products and services, and we integrate technology into our business. In 2019, customer focus, innovation, analytics, artificial intelligence and new technologies continued to be among the prioritized investment areas. By establishing end-to-end integrated digital platforms, we are designing even better and more customized experiences with technology and our innovative power.
We are experiencing a 360-degree transformation with the customer at its heart. This includes all business processes, including human resources, integrated physically and digitally. In this transformation, shaped over two main axes while providing continuity and efficiency by analyzing daily needs with core systems, we are developing projects that focus on the customer and prepare them for this new world with value-added systems.
Robot Transformation Project
As the first company in Turkey to use robots, we utilize these tools for clearly defined tasks while our human employees handle assignments that require creative and critical thinking. Thanks to our Robot Transformation Project, much of our workload is accomplished via automated means. In this framework, last year we commissioned the ADA (Aksigorta Digital Assistant), an artificial intelligence application for the insurance sector. By providing service to our employees, agencies and customers across more than 55 processes, ADA was named Best IT Cost Efficiency Project of the Year by IDC, having successfully completed 850 thousand transactions the previous year.
ClaimsChat Application
Within the scope of our technological transformation, we also introduced the ClaimsChat application, which enables Aksigorta to respond to customers’ queries about their claims via live chat. allows customers to return to chat speed. After receiving claim notices from customers, the application creates a WhatsApp group consisting of an expert, a file officer and a service and customer representative for fast and transparent communication. Use of the application reduced process completion time by 30%.
Agile Team
As our customers’ demands develop and change more rapidly, we have also adapted our methodologies to respond more quickly and effectively. In this context, we formed a 10-person Agile Team that includes the product owner, the scrum master and the development team required to design end-to-end solutions that are faster and more agile. Implementing the scrum framework for managing this process has enabled Aksigorta to solve problems more quickly, resulting in greater customer satisfaction.
The Agency Companion: Technology
For the sector’s most traditional channel – the agency channel - we have established technology and digitalization as the agency’s friend and colleague. Thanks to the agency world application, agencies can instantaneously monitor their commission gains, production, losses and policy renewals. Our agencies now regard technology as a companion - not a competitor - within the framework of our transformation plan.
As a result of the responsibility we assume towards future generations, we uphold our cooperation with the World Wildlife Fund, ongoing since 2015, and consistently work to reduce our carbon footprint.
Cooperation
As Aksigorta, we employ an efficient transformation process by working with competent external enterprises, rather than developing all technologies in-house. In this direction, we are cooperating with approximately 10 start-ups in our damage, web mobile infrastructure, chatbot, technical and other processes. Our cooperation with two start-ups - both in Turkey - for our ADA and ClaimsChat projects brought us ahead in understanding customer reflexes and behaviors; in both projects, we focused particularly on consumer experience. We plan to continue developing our collaborations with different stakeholders in an open innovation approach.
Environmentally Friendly Applications
As a result of the responsibility we assume towards the generations to come, we have continued our cooperation with the World Wildlife Fund, ongoing since 2015, along with reducing our carbon footprint. Thanks to the sustainable applications we initiated in our working areas, we encourage recycling and minimize the impact of our activities on the environment.
Successful Financial Results
With accurate strategic steps, alongside the efforts of our agencies and employees, we had a year filled with successes and awards. As of the end of 2019, we increased our premium production by 30.9% and produced TL 4,474 billion premium. We have achieved 35% growth in the traffic branch, 25% growth in the transport branch and 23% growth in the MOD insurance branch. In parallel with our profitable growth target, we plan to add even more value for our shareholders in the future.
In parallel with our profitable growth target, we plan to add more value for our shareholders.
A Successful Year Crowned with Awards
We had a stellar year in which our successes were recognized. Ranking first in its own category in the Gartner Eye on Innovation awards, among the world’s leading technology awards, and placing second in the entire EMEA region, our Digital Mirror Project was awarded first place in the Operational Excellence category at the IDC Artificial Intelligence, Analytical and RPA Technology Awards. We received the Stubborn Owl award at the Owl Awards, in which the Turkish Researchers’ Association (TÜAD) recognizes the most successful research projects. Earning two Golden Stevie Awards in the CRM Suite Mid-Market category and the Sales and Marketing Mobile Application category, we also gained two Silver Stevie Awards in the 13th Stevie Sales and Customer Services competition. Our artificial intelligence-based website was recognized with the Gold Stevie Award in the Stevie Awards.
We received the “Turkey’s Best Employer” award within the scope of studies conducted with employees for more than 50 years by Aon Hewitt, one of the world’s leading companies performing workplace excellence research.
In integrating technological developments with customer-oriented projects, our year was one in which we took successful steps. We hereby thank all our shareholders, especially our main shareholders Sabancı Holding and Ageas, who have supported us in our achievements.
Respectfully yours,
Haluk Dinçer
Chairman of the Board of Directors
Uğur Gülen
Board Member and General Manager
