Outside of Istanbul, the company has branch offices in Ankara, İzmir, Bursa Antalya, Diyarbakır and Gaziantep. NART’s international knowledge and reinsurance capabilities has enabled it to win large global clients, and more than 50% of its turnover presently comes from international companies. NART´s core areas of expertise are energy, construction, heavy industry, pharmaceutical, textile, retail, risk management, logistics, food & beverage and claims advocacy.

Joining Brokerslink

NART joined Brokerslink in 2009 and took part in its first global conference held that year in Hong Kong. Levent Nart, the founder of NART Insurance & Reinsurance Brokerage and current President of the Supervisory board of NART attended that conference. At that time Brokerslink had 67 attendees at its global conference. The last Global Conference, held in Porto in 2022, hosted 361 participants from over 71 countries. Brokerslink has grown immensely over the last few years, and this small group of 67 people has blossomed to become a company with a worldwide footprint in over 130 countries. NART has grown in parallel to Brokerslink and is now has the largest independent local brokerage in Turkey.

Brokerslink enables NART to place business and deal with claims all over the world, providing confidence that wherever a client has an operation – be that a large production facility in North America or a mega construction project in South America – it has access to a strong partner that can provide help and assistance with local legislation, local policy placements and claims handling.

The network also provides deep insights into different market dynamics and company perspectives.  This diversity also provides access to different markets, business models and insurance products which would otherwise not be available directly. Brokerslink brings strength and unity. Qualities and partnerships that in these difficult times of volatile financial markets, increasing mergers and acquisitions, and political uncertainty are more important than ever.

Challenges and opportunities for brokers

Global challenges, from economic and resource pressures and growing losses have impacted the global insurance industry. And as if those pressures weren’t enough, rising inflation, interest rates and tax policy changes have added additional pressure on investment income.

All these factors look set to fuel a continuation of the hardening market in most countries. Dealing with these difficult market conditions is perhaps the greatest challenge facing brokers today, challenges which are also accompanied by changing customer expectations; lack of innovation; and an ageing workforce.

These signs of hardening create real challenges for brokers as well as clients. In the Turkish market insurers are increasing rates, reducing available capacity, lowering limits, and introducing Covid-19 and lockdown- related exclusions.

The Turkish insurance and broking market development

 In 2021, the Turkish market saw premium volumes of Turkish Lira 105bn (about US$ 10bn). The market itself is dominated by non-life (83%), with 36% of that accounted for by motor and motor liability insurance.

Competition is still extremely high in Turkey, with a very soft market over the last 10 years – although this changed abruptly in 2022. Rates and deductibles are now increasing and coverage is being reviewed with more scrutiny. Denise Nart, Chairman of the Executive Board & Board Member of NART, believes the market will harden even more in 2023 and that the upcoming five years are very difficult to predict. “I believe that in Turkey and all over the world, for the upcoming years we will see an increase in carrier consolidation. In fact, partnerships and deals have become a necessity for most carriers to focus on their core competencies and enhance technology. It is a challenging time for an industry that has been traditionally risk-averse, conservative, and slow to change. But insurance market players must now build new strategies, they must work on digital solutions, innovation and customer-oriented processes”, she adds.

It is expected that the Turkish market will grow 20% - 25% on average  in real terms in the next few years. There will almost certainly be growth in cyber, renewable energy, political risk, parametric insurance, risk management solutions, captive solutions and digital insurance solutions. Solutions for sharing economies will also become more and more important. 

Attracting and retaining talent

There is without doubt growing talent gap in the insurance industry, one that is becoming critical as there are employees move closer to retirement than there are young people looking to join the profession. It is an unhealthy balance and one that will get worse if the market continues to focus on recruiting experienced underwriters, actuaries, and brokers in the war for talent rather than looking to attract and invest in the under 30s.

“Businesses need to commit” comments Denise, “to invest time and money in the young rather than rely on head hunting experienced staff. At NART, for example, we take 20 students from universities every year for a full day’s programme, and then select 10-15 to join us for internships. And it works. Our construction energy head, who also now sits on our board, started as an intern, as did our head of claims and head of P&C. We like fresh blood and growing our own. It may be more effort in terms of training and career planning, but it is worth it – they are loyal, immersed in your company culture, and bring fresh ideas and thinking.

And she adds, “The future and what is about to come can be exciting. As the fight for talent hardens, I believe this will push a lot of companies to educate their own staff and invest in attracting the young.”

Trends and challenges on the horizon for the industry

There are several technology trends in the market which could transform the very nature of insurance. To name just a few - big data, artificial intelligence, robotic devices, blockchain, drone technology, driverless vehicles, voice assistants, consumer economy, industry 4.0…

NART has been focused on the process of digitalization for a long time. A separate digital committee was established 8 years ago, led by the Digital Transformation Manager and reporting to the Board. This committee consists of 10 people, each working in a separate department within the company. As many employees as possible are involved in the process, because it is not only technology but a matter of management and people. “If you do not have a team that is actively involved in the digital transformation process the process is doomed to fail.,” says Denise.

The focus lies on automatization of internal processes, faster and personalized Client Experience, and digital sales. And the biggest challenges are always around adapting in this everchanging environment. But as Darwin once said, “It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change." 

NART's vision for the future

NART has been active in the market for more than 23 years and is the largest independent insurance and reinsurance brokerage firm in Turkey with 120 employees and six regional offices. NART ‘s main competitive advantages are: the specialization in complex and specie risks, with long experience in placing large, sophisticated risks in different international reinsurance markets including Lloyd’s (being one of the 2 brokers in Turkey of the 120 in the market to who have a Lloyd’s license); company culture; digital know-how and innovation; a very strong brand name & global footprint, through the Brokerslink international network. In the future NART will continue to focus on customer satisfaction, profitability, and digitalization. By developing their reinsurance capabilities, they also plan to expand their global footprint.