Turkey has carried out important projects in terms of infrastructure in the last 15 years. Along with these big projects, Turkey has encountered issues related to the insurance of the financing which is required for infrastructure projects. Securing the finance flow through insurance and reinsurance builds trust with the cooperation between the public and private sectors. Insurance institutions have an important place among the shareholders in the cooperation between the public and private sectors. Since the infrastructure projects are financially large, all of the investments to be made should be analyzed well and the financial flow should be regular. In these kinds of investments, high debt rates may breed suspicions about the financial part of the investment. In order to ease these suspicions, it is required to provide assurance which will secure the finance flow. IBS Insurance and Reinsurance Brokerage Inc. is a company that provides consultancy service in this subject. In order to better understand the insurance process of the infrastructure projects, we carried out a conversation with the General Manager of IBS, Murat Çiftçi: There is an opinion that the insurance market is heading towards the Middle East and Asia. Within this scope, can you evaluate the insurance sector in Turkey? The insurance business in Turkey is quite new in comparison with other European countries. Considering that today’s insurance perspective has been carried out first in 14th century in Europe, the sector should make serious progress in order to catch up with a 500-year delay. This progress has been employed in recent periods and seems to be on a sound basis thanks to the new investments of the leading insurance companies of the world. The gaps of the legislation and the inspection revealed in the development phase are, unfortunately, still among the most important problems of the sector. Istanbul will undertake the central role where all of the resources come together for the insurance needs of not only Turkey but also other countries in the forthcoming 10 years. Now, there is a huge reinsurance capacity in the world. In an environment where global capital knows no limits, this capacity is heading towards companies where the legislation and conditions are suitable. However, we can say that continental Europe still has a huge portion in the world’s insurance market especially in terms of reinsurance. Can you explain the insurance process of the infrastructure projects? Infrastructure projects are generally described as special mid and large-scale risks in the insurance sector. In the insurance processes of these kinds of projects, making the right risk analyses and identifying insurance needs are the most important subjects. In accordance with these needs, establishing the assurance structure, accordingly, providing insurance assurance, presenting the risks accurately and adequately to insurers are of great importance. In the event that the project subject to the insurance is carried out with national or international credit resources, a complex process management which we describe as the finance insurance of the project and where the finance is insured along with the insured risk occurs. As I mentioned before, generally in this process, the risks of the project are identified, according to these risks, the assurance structure is established, creditors and the insurance consultants agree on this structure and then the risks are secured under the insurance pursuant to the agreed risks. In addition, in this process, the documents such as the assignment agreement and the commitments received from each insurer providing insurance are known as one of the most important factors in providing credits. As brokers, our most important added value can be summarized as completing this process in the most unproblematic and quickest way possible. While insuring the infrastructure projects, does the insurance of the project or the insurance of the finance include the main risk? What are the factors that change the risk distribution? Putting the project in the true insurance model automatically provides the insurance of the finance. In the feasibility phase, identifying the risks accurately and providing the relevant assurances sustain the project within the frame of its own operation. Relevant risk management support can be taken from an insurance broker experienced in the field of project finance insurances and the possible risks can be clearly identified. What is the function of the reinsurance system in Turkey as regards to the insuring of the infrastructure projects? Until quite recently, the insurance structure of infrastructure projects in Turkey was founded on the reinsurance system based on the condition which requires having a high credit rating for risk-taking companies. Along with the increase in the credit rating of Turkey, this condition was loosened and the insurance companies in the local market were included in serious risk. Also, since the Turkish banks started to have a more active role in ensuring finance, the capacity of the local companies is used more effectively in recent years. Serious infrastructure investments have been made in the last ten years. What is the return of these investments for insurance companies in terms of figures? The data is provided by the Undersecretariat of Treasury and as I mentioned before, a large part of the relevant premium goes to the reinsurers outside of Turkey due to the need of reinsurance. As IBS, we provided insurance and reinsurance brokerage service for the investments that require the project financing of approximately $7,5 billion in Turkey to date. Considering that in these projects, 90% of the premium paid goes to the foreign reinsurers, unfortunately, the domestic insurance companies are not benefitting from the returns of these investments as it is predicted. Each sector has a vision for 2023. What is your 2023 vision? As IBS, we raised our bar with the successful projects that we carried out to date. In the 100th anniversary of our Republic, our aim is to sustain our development and to be the best brokerage company in terms of insurance and reinsurance brokerage along with our experienced and expert human resources team in Turkey and the countries in the region. I hope our flag will wave in different countries until that period.