APRIL 2020 CHANGES OF INSURANCE PREMIUMS PER DISTRIBUTION CHANNELS IN TR.
SOURCE: TSB.
In April 2020, when the Covid 19 pandemic was felt intense, brokers and direct+other channel productions increased while the sales of agencies and banks decreased in comparison to April 2019. Total production rises 10.6% in this month
Total production branch based changes in April 2020
| BRANCH | APRIL 2020* | APRIL 2019* | CHANGE |
| CMTPL | 1.269.899 | 1.491.181 | -14,8% |
| M.O.D. | 668.338 | 822.699 | -18,8% |
| FIRE AND ALLIED PERILS | 685.384 | 549.490 | 24,7% |
| MARINE GOODS ON TRANSIT | 114.051 | 95.400 | 19,6% |
| HEALTH AND SICKNESS | 789.839 | 690.664 | 14,4% |
| Agriculture Ins. Subsidised by Gov. | 209.245 | 228.827 | -8,6% |
| C.A.R.(**) | 754.901 | 22.386 | 3272,2% |
| OTHER | 746.691 | 836.067 | -10,7% |
| NON-LIFE TOTAL | 5.238.349 | 4.736.715 | 10,6% |
*x1000 TRY Source TSB
While TR insurance industry grew in fire, marine goods on transit and health, shrinked in traffic, motor own damage and other branches in the table. Approximately 100 million dollars premium of a project policy (**) issued in the C.A.R. branch ,created a great growth effect in the total production of April 2020.
Per distribution channels branch based changes in April 2020;
| BRANCH | AGENCY* | CHANGE | BANK* | CHANGE | BROKER* | CHANGE | DIRECT+OTHER* | CHANGE |
| CMTPL | 998.353 | -13,5% | 21.199 | -27,1% | 64.224 | -4,0% | 186.123 | -22,8% |
| M.O.D. | 534.828 | -16,5% | 62.649 | -21,3% | 61.998 | -36,1% | 8.864 | 59,1% |
| FIRE AND ALLIED PERILS | 253.388 | 11,1% | 173.615 | 5,1% | 182.882 | 66,1% | 75.499 | 63,8% |
| MARINE GOODS ON TRANSIT | 57.501 | 14,6% | 6.167 | 60,1% | 39.931 | 30,5% | 10.452 | -3,0% |
| HEALTH AND SICKNESS | 378.235 | 7,2% | 48.756 | -18,5% | 218.954 | 40,5% | 143.895 | 17,7% |
| Agriculture Ins. Subsidised by Gov. | -273.013 | -494,5% | 55.630 | -26,1% | 236 | -58,1% | 426.392 | 408,8% |
| C.A.R. | 14.829 | 53,6% | 1.853 | -44,3% | 6.166 | -18,2% | 732.053 | 39164,9% |
| OTHER | 254.152 | -21,1% | 196.218 | -24,0% | 176.411 | 23,9% | 119.911 | 5,6% |
| NON-LIFE TOTAL | 2.218.272 | -21,5% | 566.088 | -16,0% | 750.801 | 22,9% | 1.703.187 | 172,6% |
*x1000 TRY, TSB
Agencies performed 42.3% of the total production in April. Fire, marine goods on transit and health production growth did not recover the losses in traffic, motor own damage and other branches.
Because of the cancellations in Agriculture Insurance Subsidised by Government production, agencies were the most shrinked channel in April. If we exclude the production of Agriculture Insurance Subsidised by Government, agencies total declined 9.7% in April 2020.
The banks increased the fire and marine goods on transit production, but they shrunk due to results of other branches.
Brokers achieved to rise their total production, even the reduction of CMTPL, motor own damage,
Agriculture Insurance Subsidised by Government and C.A.R. premiums.
Direct + Other channels succeeded good increases in all branches and in total, except CMTPL and marine goods on transit. Particularly, the growth rates are quite high in c.a.r and Agriculture Insurance Subsidised by Government
In april 2020 there were great contractions in many sectors like textile, construction, automotive, tourism, etc.. Even we evaluate the TR insurance industry except enormous c.a.r project policy, insurers performed better than many sectors in April 2020.
Rıza OYGUR
June 2020
