General Manager of AvivaSa Meral Egemen

 “AvivaSa has changed the terms of competition in the sector” 

Meral Egemen, general manager of AvivaSa which has passed beyond a critical point in the merger period says, “In order for our new brand to reach the target of recognition we will launch intensive communication campaigns that are to be talked about.”

Having been born out of the merger of two large insurance companies, will AvivaSa influence the general structure of Turkish insurance sector? If yes, what kinds of difference do you expect to be? 

The single most important reason for the establishment of AvivaSa is the confidence that its founders, Aviva plc. and Sabancı Holding, have in the individual pensions and life insurance sectors in Turkey. Two large organizations have formed the optimum partnership, taking into consideration also Turkey’s potentials and aiming to provide customer-focused products and services. Turkey’s leading company in individual pensions field was born out of that union and the market ranking changed. Today, AvivaSa assumes a great responsibility with its 25% percent market share in the total volume of funds accumulated in the system. Again, AvivaSa has made a difference also with its multiple distribution channel structure. In addition to the largest direct sale channel of the sector, it has established an all-encompassing distribution channel with such extra alternatives as telemarketing, institutional sale, agencies and sale from the bank. Besides with reaching out to customers, the present distribution channels of AvivaSa cover also those who expect different things from the sector thus shaping the competition.

 Pensions funds in both Europe and the U.S. are of an enormous size and have a significant role in the development of capital markets. What might be the reasons for the failure of a similar system to get established in Turkey? What kind of efforts should be made in order develop and enlarge pension funds? 

When we look at the ratio of individual pensions funds to GDP in Europe and in developed countries like the U.S., we see that these funds receive quite big shares. There are several reasons for this... First of all, since social needs of high income countries also become different, rates of insurance ownership in these countries are high as well. Also generous tax incentives in Europe and the U.S. render entry into the system all the more attractive. Another important reason is that history of the systems like individual pensions in these societies dates back to long ago.

In Turkey, however, individual pensions started such a short time as four years ago. In the course of that period, a fund size of around YTL 4.5 billion was reached in the system. We can say that this figure, which was realized in accordance with the projections made at the beginning of the system, is a realistic and possible one reflecting Turkey’s potential. We expect there will be a rise in the rates of entry into the system and in the amount of accumulated funds in the system especially with the introduction of regulations by public authorities. At this stage tax incentives will have a great influence. Apart from that, the existing 10 individual pensions and life insurance companies continue to pursue communication efforts in order to further expand the system and increase its recognition. In this field, at AvivaSa we are making communication efforts which increase recognition and our likelihood of being preferred, in accordance with our mission to become the company that sets the rules in sector. 

Do you think that EU candidacy process will bring more positive results for the insurance sector? 

There are many sources of the growth of insurance sector in Turkey. Although EU candidacy process is not among these reasons, many arrangements made towards that purpose affect the economy in general and naturally the insurance sector. Having reached a transparent, consumer-focused system as a result of the arrangements made, witnessing a rise in purchasing power and diversification of social needs in parallel with the increase in national income, Turkey embraces insurance products more and more. 

Product diversification is at a low level in Turkey. Is it among your plans to introduce Turkish consumers to new products?       

 With the development of individual pensions and life insurance sector in Turkey, we will provide new products to our customers that match their needs. Foremost among these products is the annuity insurance. After arrangements are made and timing is decided we will declare the details about this issue to the public. 

Could you inform us about your company’s targets and the “roadmap” you have adopted for these targets? 

At AvivaSa we have declared the period from November 2007, the date when our company was created, till the end of 2008 as investment period. We will launch much talked about, intensive communication campaigns in order for our new brand to reach its recognition target. Besides, we will get ready for greater numbers of customers by completing our infrastructure investments in technology.