OVER THE PAST YEARS, AGENCIES + BROKERS PREMIUM INCREASING RATIO WAS MORE THAN THE COST INCREASES

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Between 2017 and 2019 agencies/brokers performed well and grew 42.5% by premiums. In the same period, operating costs raised just 26.8%.

 

x 1000 2017 2018 2019
PRODUCTION*
 30.883.969 36.353.635 44.024.284
ANNUAL TOTAL COST*
 2.544.903 3.494.919 3.227.749
Cost of per 100 TL premium.
 8,24 9,61 7,33
AGENCIES+BROKERS
TUIK-TSB

 

In Spite of the rising costs between 2017 and 2019, the production costs decreased per 100 TL premium. Let’s analyse the changes of costs.

 

x 1000 2017 2018 2019
NUMBER OF EMPLOYEES*
 37.930 38.689 35.267
PERSONNEL COST* -GROSS-
 1.337.846 1.441.097 1.654.256
ANNUAL TOTAL COST*
 2.544.903 3.494.919 3.227.749
AGENCIES+BROKERS
TUIK

 

Despite the reduction in the number of  employees,  employee costs are rising.

 

x 1000 2017 2019 RATIO
NUMBER OF EMPLOYEES*
 37.930 35.267 -7,0%
PERSONNEL COST* -GROSS-
 1.337.846 1.654.256 23,7%
ANNUAL COST PER EMPLOYEE*
 35.271 46.907 33,0%
ANNUAL TOTAL COST*
 2.544.903 3.227.749 26,8%
AGENCIES+BROKERS
TUIK

 

Consequently between 2017-2019 the increase in total costs was 26.8%, but employee costs only raised 23.7%

 

Agencies and brokers are trying to control their costs by reducing all their expenses. So they have to continue their cost reduction processes by digitalization, creating new working models, relocation, etc.

 

RIZA OYGUR

August 2021