Management’s Assessment

Esteemed Shareholders,

When we look back at 2020, we can see that the coronavirus outbreak in China affected the entire world. Social mobility was sharply curtailed while social isolation gripped much of the globe due to the outbreak, which caused the most severe economic depression of the last century. Countries closed their borders and restricted activities in some sectors of the economy resulting in serious economic repercussion around the world. Quarantine measures led to a major decline in produc-tion, widespread loss of employment and plummeting confidence indices.

Central banks of many countries reduced interest rates in hopes of softening the pandemic’s eco-nomic devastation on supply chains and production capacity. Nations around the world, including emerging markets, implemented asset purchase programs, liquidity support, lending and other eco-nomic assistance programs on an unprecedented scale.

In the pre-pandemic period, international forecast institutions expected that the global economy would expand by 3% in 2020. These projections were revised downward to a 5% contraction fol-lowing the outbreak.

Pre-emptive government measures taken in Turkey even before there were any coronavirus cases, made the country more prepared than many. The Turkish government implemented many economic assistance efforts and announced support packages to minimize the impact of the pandemic on both the public and private sector. As a result, OECD revised upward its 2020 forecast for the Turkish economy from a contraction of 4.8% to negative growth of 2.9%. OECD also revised its 2021 forecast for Turkey from positive growth of 4.3% to 3.9%.

During the year, Aksigorta introduced many innovative applications to support its customers to stay safely at home. In particular, we launched the “emergency medical assistance hotline” in 2020.

The insurance sector, which is directly affected by the dynamics of the real economy, is also un-dergoing a turbulent period. All sector representatives, especially TSB (Insurance Association of Turkey), are working together in cooperation and solidarity. Thanks to the various steps and measures taken in 2020, remote insurance premium collection and expert report generation are now standard operating procedures. Similar positive developments have been recorded in terms of in-surance business operations and service continuity.

Meanwhile, the establishment of the Insurance and Private Pension Regulatory and Supervisory Authority (IRSA) was very important in terms of bridging the regulator gap in the market, which has been an issue in the Turkish insurance industry for a long time. With a team that understands all the needs of the sector, IRSA will maintain a balanced competitive environment in terms of im-plementing the reactions towards needs.

Health and Cyber Risks

2020 was a year where we became acutely aware of health risks as well as digital risks. Payment of epidemic related claims from the coronavirus outbreak triggered a sharp rise in claims in the health branch.

During the year, Aksigorta introduced many innovative applications to support its customers to stay safely at home. In particular, we launched the “emergency medical assistance hotline” in 2020. Customers can now dial 444 27 27 to obtain information and guidance from Aksigorta doctors and healthcare personnel regarding their health-related issues. With the latest updates to the Aksağlık mobile application, customers can monitor the pre-approval stages for examinations they receive at contracted institutions. Aksigorta customers simply upload the image of the invoice and complete their application to receive payment after they are examined in a non-contracted institution. As a result, we have eliminated the need for customers to send the original invoices for healthcare ex-penses up to TL 20,000. In addition, we decided to conduct transactions online for customers who want to obtain health insurance coverage during this period. Rather than original signatures, we receive online approvals from customers at the policy issuance stage.

Our awareness of digital risks rose to a much higher level compared to the previous year. Both the issues and digital dangers we experienced while working from home helped us to develop this heightened awareness.

Aksigorta offers coverage against a wide range of digital risks with its Cyber Protection Insurance. These include illegal electronic transfers from bank accounts, unauthorized changes to the insured individual’s personal data, and ransom demands made with the threat of damaging computer sys-tems.

Additionally, we continued to support SMEs with Government Supported Credit Insurance by covering their receivables that may pose a risk. This year, Aksigorta saw a rise in credit insurance claims.

Investment in Digital

Aksigorta leads the industry in terms of digital transformation. We introduced digital momentum to the sector with the digital transformation initiatives we commenced two years ago and our artificial intelligence (AI) application, ADA. We have now completed digital transformation in all our busi-ness processes. Transactions such as proposal processes and policy creation, which formerly took about two hours, were reduced to only two minutes. We have completed 3 million successful transactions with this new process. With price determination included where AI is used, Aksigorta can deliver the most appropriate products to customers with affordable prices.

60^th Anniversary

In 2020, Aksigorta commemorated its 60th year by holding a celebration in the digital environment. Backed by the strong reputation of Sabancı Group and the ongoing support of Ageas, Aksigorta has led the industry for 60 years thanks to its employees, customers and business partners. Without a doubt, our employees, business partners and stakeholders have helped make Aksigorta the most reliable and the most profitable insurance company in Turkey.

Changes in Claims Processing

Aksigorta launched an online expert report program that makes it possible to perform motor and non-motor expert claims reporting procedures remotely. We make life easier with remote expert reports by receiving documents or videos, when necessary, via WhatsApp. With the Pick-Up & Delivery Service, Aksigorta provides free valet and towing services to damaged vehicle owners as well as any necessary vehicle service, maintenance and repair. In addition, we increased our claims review limits.

We are committed to investing in innovation, data analytics, artificial intelligence and new technologies.

Innovative Collaborations

In 2020, Aksigorta achieved another first in motor own damage policies. As a result of our collaboration with Fiat, the customer insurance price is determined according to the number of days of vehicle use with data obtained via Fiat Yol Arkadaşım Connect app. Drivers using this app enjoy discounts of more than 10% on motor own damage policies depending on the duration of vehicle use.

Collaborating with Vodafone to make sure that even more people enjoy its services, Aksigorta launched the Telcosurance Project and started to integrate into different ecosystems. Within the scope of the project, Vodafone Insurance Agency issues insurance policies with the assurance of Aksigorta.

Customer First

Thanks to its Customer First team, Aksigorta created a new structure where it provides support to customers until their problems are fully resolved. The dedicated team delivers a reliable and easy complaint delivery and resolution experience. We analyze complaint data in detail and receive valuable customer insights. Aksigorta prepares and publishes customer stories and designs new processes in accordance with customer expectations. Meetings are held with business units on areas for development based on these customer stories.

Support Campaigns

Aksigorta gives a 15% discount on select insurance products to healthcare professionals, who have made great sacrifices during the coronavirus outbreak. Furthermore, we provide customers who have financial difficulties with the opportunity to postpone installment payments for one month.

During the year, Aksigorta developed a Covid-19 support package in order to assist its corporate and commercial customers as well as its individual customers. This specially designed package provides up to TL 20,000 coverage in the event company employees require intensive care as part of their coronavirus treatments. As a result, we make sure that corporate enterprises with 20 or more staff members can deliver sufficient support to their employees during these difficult days.

In 2020, a time when we stayed home for much of the time, Aksigorta donated a total of 6 tons of food to stray animals in Istanbul, Ankara, Bursa and Gaziantep. We also presented the first gold coin to the children of mothers who gave birth during Mother’s Day week to consolidate our family bonds.

To mark our 60th anniversary on May 1, Aksigorta sent gift cards to over 10 thousand employees in all our agencies and received a great response. Two days later, we gave the agencies an unconditional gold award to show how much we care about them. Aksigorta further supported its agencies with “I’m on Your Side,” “I’m with Your Business” and “I’m with Your Future” support packages.

Aksigorta sees each one of its agencies as a crucial business partner. We aim to grow with our agencies by using different channels. Aksigorta’s approach to digitalization includes its agencies; we do not leave them behind. To support our agencies working remotely, we made sure that our stakeholders can access the corporate system from their homes or from secure locations in the event of an emergency. Aksigorta defined Mobile Static IP numbers equal to the number of technical personnel registered under TOBB. As a company that prioritizes agency training, we provided development trainings in a wide range of relevant subject areas to some 1,000 agencies with our pre-recorded Training Webinar.

We want our agencies and customers to emerge from this negative pandemic environment with a very different experience. To this end, Aksigorta launched the series #evdebambaşkadeneyimler (completely different experience at home) by collaborating with experts in their respective fields through our social media accounts.

Aksigorta Digital Security Platform

Launching a major sustainability project in the field of digital security, Aksigorta established the Digital Security Platform to prepare the society against the risks of the digital world of the future. Free online digital security trainings, informative videos and news can be found in this platform with the collaboration of Boğaziçi University.

After a Successful Year

In parallel with its aim to achieve profitable growth, Aksigorta plans to deliver even more value to its shareholders in the future. We are committed to investing in innovation, data analytics, artificial intelligence and new technologies. Aksigorta aims to continue valuing its people, supporting its employees and agencies, and making their lives easier. We are focused on building and designing the future, as we have through these unprecedented times.

Throughout its 60 year history, Aksigorta has invested in its country, business partners and stakeholders. We will continue to do so in the coming years with our adaptable organizational structure and our innovative approach, without compromising on beyond insurance concept. We would like to extend our sincerest thanks to all our shareholders, especially our main shareholders Sabancı Holding and Ageas.

Respectfully yours,

Haluk Dinçer
Chairman of the Board of Directors

Uğur Gülen
Board Member and
General Manager