MILLI_RE_ANNUAL REPORT 2022

share of total non-life premium production slipped to 2%. Although premiums earned on policies that provide coverage against financial losses such as surety and credit insurance contribute only a very small share of total premium production, they grew by over 40% in 2021. Owing to economic conditions in 2022 however, they were unable to sustain that growth and contracted in real terms. The efforts of private individuals as well as of businesses to protect themselves against losses arising from online threats and data breaches has been nourishing demand for insurance products that provide cybersecurity coverage. Similarly, advances in and increased use of information technology as well as the spread of remote work during the pandemic can likewise be expected to result in increases both in the variety of such products and in the number of insurers offering cybersecurity coverage. Owing in part to new legal regulations and to the government’s increasing focus on alternative financial markets, there has been a shift to participation insurance products in recent years. Premiums earned on participation insurance policies corresponded to 5% of the Turkish insurance industry’s total premium production in 2022. The development of the Turkish insurance industry in the period ahead will most likely be determined primarily by changes in exchange rates, by demand for imports, and by the course of national economic growth. However the need to insure major public-private infrastructure projects, the expansion of the country’s Tarsim agriculture insurance pool, and efforts to promote insurance product consumption among businesses of all sizes can be expected to increase the contribution that the Turkish insurance industry makes to the national economy. Coming up with and offering properly-priced innovative products and forms of coverage that address policyholders’ genuine needs through the right channels while also adhering to strategies that focus on sustainable growth and profitability will become increasingly more important for the industry. OFFERING PROPERLY- PRICED INNOVATIVE PRODUCTS AND FORMS OF COVERAGE THAT ADDRESS POLICYHOLDERS’ GENUINE NEEDS THROUGH THE RIGHT CHANNELS WHILE ALSO ADHERING TO ITS FOCUS ON SUSTAINABLE PROFITABILITY WILL BECOME INCREASINGLY MORE IMPORTANT FOR THE INDUSTRY. SUSTAINABLE PROFITABILITY Turkish Insurance Market NON-LIFE SECTOR PREMIUM PRODUCTION BRANCH DISTRIBUTION (%) Land Vehicles Liability 28.21 Land Vehicles 21.80 Health 14.72 Fire & Natural Disasters 13.39 General Damages 10.75 General Liability 2.92 Others 3.5 ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES GENERAL INFORMATION FINANCIAL RIGHTS PROVIDED TO THE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RESEARCH & DEVELOPMENT ACTIVITIES 54 MİLLİ RE 2022 ANNUAL REPORT