DIGITALIZATION, IS IT OPPORTUNITY OR THREAT FOR THE EMPLOYEES OF TURKISH INSURANCE INDUSTRY

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Through digitalization, the rapidly developing civilization makes our business and private life easier.

The insurance industry also takes its share from these developments. Recent years, most manual works have been  digitized and become faster and more efficient.

While these progresses are going on how is the growth and employment trend in insurance companies? Let’s look at the table below created by the TSB and T.C Treasury Department datas;

NON LIFE INSURANCE COMPANIES 2017 2013
Nr. of employees* 8.264 8.358 -1%
Total Pr.x1.000.000 TRY 39.710 20.834 91%
Nr. of policies (total) x1000 62.619 52.002 20%
Nr. of policies (CMTPL) x1000 16.644 14.390 16%
Nr. of policies (without CMTPL) x1000 45.975 37.612 22%

Source; TSB, T.C. TREASURY DEP.

WITHOUT LIFE & PENSION COMPANIES NR OF EMPLOYEES, PREMIUMS AND NR. OF POLICIES

 

This table shows except non-life companies which were working in 2013 and inactive today and the companies founded after 2013

COMPARISON THE DATA BETWEEN 2013 TO 2017 FOR NON LIFE COMPANIES WHICH HAVE BEEN ALSO ACTIVE IN 2013 2017 2013  
Nr. of employees* 7.708 7.380 4%
Total Pr.x1.000.000 TRY 35.039 18.536 89%
Nr. of policies (total) x1000 48.421 42.919 13%
Nr. of policies (CMTPL) x1000 13.289 12.858 3%
Nr. of policies (without CMTPL) x1000 35.131 30.061 17%

Source; TSB, T.C. TREASURY DEP.

For 2013, Allianz datas considered as Yapı Kredi + Allianz.

Ak Sigorta is out of this table because it has no employee datas for 2017

2013 – 2017 changes; Aviva – Unico, Demir – Turkland, AIG – Gulf.

 

as above. The effect of the companies which were working in 2013 and inactive in 2017, digitalization, companies prefer to provide some internal works from outsources, employment politics of companies which have been established after 2013, etc. appears the reasons of decreasing number of employees

Near future call centers and claim services that will more effective and faster with artificial intelligence,  via digitalization faster issuing of policies according to requirements, digital sales channels, etc. so insurance sector will grow and widespread the policies with these new occasions. We should not think of these things just as operational progresses. It is also indispensable that managerial routines and approaches become coherent with these progresses. The importance and necessity of the people will be risen who consider, accomplish, implement and develop these innovations. Companies will  reduce the number of employees  but will need more qualified employees

Developments and progresses also concern employees individually. All employees who want to continue their career in the future should strive to improve their personal and technical skills and knowledge.

Ultimately, for all the people and institutions that have succeeded improvement and progress, the digital developments will bring much greater opportunities than ever.

 

Rıza OYGUR

December 2018