Author: Mahmut Güngör, General Manager, Bereket Sigorta
December 18, 2021
Bereket Sigorta was established in 1995 and offers companies throughout the framework of a multi-sales channel enterprise mannequin with the motto ‘just in case.’ By 2017, it was serving in greater than 500 places, in locations the place different insurance firms don’t have any distribution channels, and continues to fulfill the calls for of shoppers throughout Turkey with a variety of merchandise for all. It has a widespread and environment friendly provide community of over 3,300; consisting of 10 regional directorates, businesses of Agricultural Credit Cooperatives of Turkey, participation banks, saving financing firms, businesses and brokers.
Agricultural Credit Cooperatives of Turkey, the primary shareholder of the corporate, was based in 1863 and is the most important farmer organisation in Turkey, with complete property of €4bn and greater than 850,000 members. With the all-encompassing assist of Agricultural Credit Cooperatives of Turkey, Bereket Sigorta has got down to create a mannequin for participation insurance primarily based on taking the lead in the market to restructure insurance merchandise in order that they’re in compliance with Takaful rules. Bereket Sigorta has developed an exemplary mannequin for the sector known as ‘the performance supported incentive proxy model.’ The mannequin was created with the imaginative and prescient of being the benchmark for participation insurance. The concept is to supply constructive stability sharing incentives over the profitability of your entire pool with out separating revenue from investments.
What is participation insurance?
Participation Insurance is a sort of insurance primarily based on the thought of solidarity. It is constructed on a system that is removed from the normal financial and monetary practices, with curiosity and actions which might be thought of forbidden, or ‘haram’ in Islam. It can be outlined as a sort of insurance created to fulfill the insurance wants of people who steer clear of conventional insurance for non secular causes. In such a insurance, insurance actions primarily based on danger sharing and cooperation among the many contributors is carried out.
Participation insurance refers back to the insurance observe in which monetary property are managed inside a particular framework and beneath the supervision of an advisory committee consisting of specialists in the sector of Islamic sciences and insurance. In accordance with the rules of participation, firms can’t assure religiously illegitimate points and dangers, or handle monetary property throughout the framework. They should set up an advisory committee and a compliance unit and put together a participation inside audit report.
The fundamental rules of participation insurance are to guage premium/donation collected from capital house owners and contributors throughout the framework, verify that are in line with Islamic rules and submit for the approval of the advisory board, which is specialised in Islamic regulation, for insurance enterprise and transactions. Participation insurance started in Turkey in 2009 and it has proven severe growth because of the development of the interest-free finance sector in addition to the laws launched in the final decade or so.
As a part of the medium time period programme (2022–24) printed by the T.R. Presidency, Presidency of Strategy and Budget, actions to make sure compliance with worldwide requirements in the sector of participation finance and to increase participation insurance are included. In this context, participation insurance, so long as it is offered appropriately to the phase it addresses, will proceed to be an vital potential supply of funding.
Navigating a disaster
The firm operates throughout all branches together with motor, site visitors, fireplace, housing, engineering, agriculture, well being, private accident, transportation, authorized safety, TCIP and legal responsibility insurance, and continues to progress quickly in the sector with its technological infrastructure and digital options. With its dynamic and modern model imaginative and prescient, Bereket Sigorta continues to swiftly progress on the level of buyer expertise with greater than 100 robotic functions in operational enterprise processes and 24/7 service by digital platforms of particular person web and cell branches.
Participation insurance, so long as it is offered appropriately to the phase it addresses, will proceed to be an vital potential supply of funding
With the impact of quarantine and restrictions through the pandemic that affected the entire world, the corporate highlighted its on-line gross sales channel, took fast motion and elevated the effectivity of its digital channels. As part of the digital transformation course of began in 2019, Bereket Sigorta grew to become the primary firm to supply on-line insurance merchandise by the moment messaging service BIP, which is just like the Turkish model of WhatsApp. Through our software, prospects should buy insurance merchandise and entry info from businesses and authorised companies. Bereket Sigorta, which implements the primary and distinctive participation mannequin in Turkey, continues to face out in the sector with all types of company social duty initiatives and collaborations that can contribute to the sustainable development of the participation finance ecosystem in addition to the quicker and more healthy growth of participation insurance.
It contributes closely to the unfold of participation insurance by public establishments, non-governmental organisations, universities, associations and sports activities golf equipment, with a particular concentrate on company social duty initiatives. Within this scope, Bereket Sigorta labored with the Turkish basis for waste discount (TI˙SVA) and offered $101m protection to greater than 55,000 ladies entrepreneurs as they take vital steps into financial life.
In order to encourage low-income ladies entrepreneurs throughout the agricultural sector, the ‘women farmer loan’ mission, which incorporates fundamental agriculture and fundamental monetary literacy coaching, was applied in cooperation with Tekfen Foundation and TI˙SVA. This programme, applied as a social administration mission, allowed the availability of assist for low-income ladies farmers in the Aegean area of Turkey.
To deepen the participation finance ecosystem and unfold the participation insurance to the bottom, a protocol was signed between the unbiased industrialists and businessmen affiliation (MUSIAD) and Bereket Sigorta, with the thought of changing into a ‘unifying force in the economy.’ With this cooperation, discounted insurance merchandise for MUSIAD ladies, younger members and staff are provided, in addition to membership of Bereket loyalty membership, which offers benefits in many areas of every day life from buying to private growth.
Continued excellence and development
Participation insurance constitutes roughly 5 % of the insurance sector premium manufacturing in phrases of quantity and it will seemingly enhance to 10 % in the approaching durations. According to information compiled from the union insurance and reinsurance firms of Turkey (TSB), the entire premium manufacturing in participation insurance in 2020 elevated by 24.2 % in comparison with the identical interval in the earlier 12 months and reached 4.3 billion TL ($460m). There are 10 firms working in the sector of participation insurance they usually signify a big proportion of manufacturing, having the most important share in premium manufacturing.
Bereket Sigorta acquired two awards directly in the classes of the ‘Most Reliable Participating (Takaful) Insurance Company in Turkey’ and ‘CSR Excellence and Dedication to Community in Turkey’ throughout the scope of the 2021 Islamic Finance awards offered by World Finance.
This accolade is in recognition of Bereket’s management and for demonstrating outstanding imaginative and prescient in figuring out great alternative in the tremendously underserved Turkish market, whereas concurrently answering group wants for participation insurance. Bereket Sigorta’s profitable nomination is not solely because of its long-standing information of experience in danger administration, but in addition for its compelling marketing strategy, mobilising extremely certified professionals with procedural know-how, allocating sources and having the ability to make excellent progress in a brief time period.