The Turkish Commercial Code defines an insurance policy as follows.
ARTICLE 1401- (1) An insurance contract is a contract whereby the insurer undertakes,
in return for a premium, to compensate for the loss of a person's financially quantifiable
interest in the event of the occurrence of a risk or danger, or to make a payment or
perform other obligations due to the life expectancy of one or more persons or certain
events occurring in their lives.
Accordingly, insurance is a legal contract established between the insurance company and the insured. It would be unfair to expect customers to have a perfect command of insurance legislation. For this reason, insurance legislation generally protects the consumer; however, one should not leave matters to chance by relying on this. Prolonged legal proceedings can result in financial loss, market disruption, and reputational damage for customers.
The design of an insurance programme is tested in the event of a claim; policies exist to protect the customer's balance sheet in difficult times. Sometimes, a single word in a policy can pave the way for legal disputes, and misguidance in a customer's international operation can result in non-compliance with local legislation, leading to tax and licensing penalties. It is impossible to implement robust risk management using the same wording for all customers. In designing an insurance programme, technical knowledge, mastery of the customer's sector and risk details, knowledge of global insurance practices, claims experience, mastery of the Turkish Commercial Code and insurance legislation, and the ability to think from the perspective of an insurance company will yield favourable results for the client.
For all this to happen, the experience of the broking team representing the customer is extremely important. The added value of intermediary institutions is to bridge the gap between the client's realities, risks, and sector, and the complex insurance legislation. At Galata Reinsurance and Insurance Broking, our strongest point is programme design based on technical knowledge, mastery of legislation, and experience in claims and reinsurance.
In the business of insurance companies, agents and brokers requiring reinsurance capacity,
it is critically important to decide on the facultative placement structure (proportional,
excess of loss, hybrid programmes) and the choice of reinsurance markets. A strategy is
developed by considering parameters such as the required capacity, target price and
conditions, and the reinsurer's financial strength (security) expectations.
With 25 years of experience in reinsurance and our strong relationships with reinsurers,
we provide our partners with timely support in the area of facultative reinsurance.
In Treaty Reinsurance, it is important to interpret the insurance company's financials and underwriting strategy and present them to the reinsurance market. Otherwise, the insurance company will be treated in the reinsurance market in line with the general market trend. Thanks to our experience in interpreting insurance company financials, changing business acceptance strategies (re-underwriting) and modelling results, and our strong relationships with reinsurers, we offer added value to our cedant customers in treaty reinsurance.
Increasing natural disaster capacity prices and shrinking capacities for Turkey, coupled with increasing regulations on modelling and protection, mean that the proper management of modelling is becoming increasingly important. The most important step here is for the reinsurance broker to check and interpret the data and strategically guide the insurance company in terms of data management. Through our collaborations with various data organisations, we support our partners in ensuring that insurance companies receive the right protection and regulatory compliance through fast and meticulous service.
The quality of an insurance policy is tested in the event of a claim. Parties may
interpret the insurance contract differently, especially in cases of large-scale damage,
and third parties are involved in interpreting the damage and the insurance contract.
No matter how well designed the policies are, time works against the insured, and
issues such as reputation and market loss are not covered by insurance compensation.
Even if the parties are not acting in bad faith, the claim process can be prolonged.
Insurance contracts are subject to many regulations, primarily the following:
These regulations change and diversify over time, and there may even be changes between
the issue and expiry dates of long-term policies. Thus, an insurance contract is a
complex legal document. In the event of a claim, the interpretation of this document
may differ between the parties. Differences may arise between legal interpretation and
interpretation based on insurance techniques and field realities. In such cases, our
experienced claims team and legal partners are at your side.
With our mastery of insurance techniques and legislation, we support our clients in the
management of claims and related insurance law processes, intervening when necessary,
even if the policy was not issued by us.
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