Risk Management Policy


The policies established for the risks that Türkiye Sigorta is exposed to are regularly reviewed in parallel with the changes in market conditions.

The risks evaluated in the risk management process are as follows:

Insurance Risk

The risks arising from the concluded insurance contracts are; The insured risks are not chosen in a healthy way, insurance premiums are not determined at a level to cover future damages, and concentrations arising from the inability to distribute the risk can be exemplified.

While preparing the tariffs and making individual pricing, market conditions, reinsurance agreements, turnover, profitability and sustainable growth targets are taken into account as a whole.

At the level of agencies, regional directorates, and general directorate at Türkiye Sigorta, which risks are to be insured and under which conditions are determined and updated every year by technical service directorates within the framework of risk acceptance principles by making use of reinsurance treaties and past claims experience. A booklet on the principles of practice, which shows under what conditions, how and to whom the insurance products will or cannot be sold, including the risk acceptance principles, is distributed to the sales channels every year for information purposes.

Reinsurance and Special Risks Management and Senior Management determine the custody shares and treaty conditions to be purchased on a branch basis, taking into account the Company's customer portfolio, past damage statistics, business volume planned to be realized in the next year, equity structure and current market conditions. Risks that are not within the scope of reinsurance agreements, exceeding the treaty conditions and capacities, or that may upset the Company's balance of treaties are covered by domestic and international voluntary reinsurance support.

Credit Risk

Credit risk is defined as the possibility that parties that have a material relationship with the Company cannot fulfill their obligations to the Company. Reinsurance transactions and premium receivables from agencies are the main areas that create credit risk for the Company. The Company monitors the receivables arising from insurance activities within the framework of collection policies and limits it through the guarantee policies it has established. In the selection of the reinsurer, T.C. Credit ratings of reinsurers are taken into account with the "List of Reinsurance Companies Meeting Financial and Technical Criteria" created by the Ministry of Treasury and Finance, and the effects of changes in market conditions on credit ratings are monitored.

 Market Risk

Possible losses in the values of the instruments in the Company's portfolio as a result of changes in interest rates and exchange rates are evaluated within the scope of market risk. These risks are monitored through reports prepared for foreign exchange positions and securities.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its due obligations. The said risk arises as a result of the inability to sell the assets and convert them into cash, especially in periods when cash is needed. The fact that the maturities of the assets are longer than the maturities of the liabilities increases the liquidity risk.

The Company's cash flow is monitored on a daily, weekly and monthly basis, and asset-liability management is carried out by monitoring maturity mismatches and foreign currency positions on the balance sheet.

Operational Risks

It is the risk of direct or indirect loss resulting from inadequate and failed internal processes, personnel and systems, or external events.

The practices that need to be done in the activities and processes carried out throughout the company have been written down with the prepared procedures and the job descriptions of the employees taking part in the processes have been determined formally. The authorizations of business units and users and the approval mechanisms to be implemented in the processes are determined by the Board of Directors, General Manager and Assistant General Managers, and are defined within the scope of written regulations and procedures.