Insurance firm to heal unemployement wounds
Güncelleme Tarihi:
Eren Güler - Hurriyet
Oluşturulma Tarihi: Ocak 31, 2009 00:00
ISTANBUL - As unemployment rate rises rapidly in Turkey, French insurance firm is offering a little stress relief. Cardiff says it will pay the salaries and cover credit debts of its insurence policy holders if they lose their jobs.
The French-based insurance company Cardiff is to offer a little breathing room those in fear of losing their jobs and being unable to pay bills.
To provide a little relief for the trauma caused by the economic crisis, Cardiff promises to pay the salary and cover credit debts of its insurance policy holders should they lose their jobs. Cardiff entered the Turkish market six months ago.
Turkish citizens have shown an intense interest in the Cardiff products, said Cardiff Turkey CEO Yılmaz Yıldız.
The services offered by the company can be divided into four main groups: "The first consists of consumer loan protection products. These are sold together with consumer loans and get activated when one is unable to pay loans. The second is for credit cards. When those who have purchased this service lose their jobs, we pay their credit card balances with their interest in certain installments." Income security services are the third group. "When you become unemployed, your salary is deposited into a bank account as if you are still working," he said. "The last group consists of other consumer services, such as bill payments. We undertake all fixed payments when you lose job," he said.
Only permanent workers can benefit from the firm’s products, Yıldız said. "We step in when people lose their income earning power involuntarily and become jobless. We pay monthly installments for them."
Citing a standard service as an example, he said: "It generally covers 18 months, namely three unemployment periods, each consisting of six months. The period may extend as much as 36 months, but prices increase accordingly. We pay your loans during the unemployment period and you do not have any debt afterwards, as you have already purchased the service beforehand."
For an unemployed person to obtain income security worth 1,000 Turkish Liras for six months, a monthly premium of 25 to 30 liras is required, he said. Cardiff guarantees a different amount according to every customer, said Yıldız, who defined this method as "tailor-made."
"We design ’tailor-made’ products in line with our partners’ priorities and strategies. We shape these services together with our business partners according to variables, such as risk, loan type, maturity structure, customer segment and demographic."
Boom in insurance demand
The demand for consumer loan protection services started to increase with the impact of the global crisis, particularly after September 2008, "as people did not feel secure, and had concerns about the future," Yıldız said.
"The annual sale of credit card, corporate loan protection and income security services for unemployment rose from 10,000 to 40,000 over the period. We surpassed 50,000 in sales in December. We have started to receive a high amount of applications for loan payments, salary payments and covering credit card balances for the unemployed. Our year-end target for 2008 was 25,000 at the initial phase; however, we increased this figure to 100,000 and then 300,000 units."
Yıldız said that the firm had around 95 percent share of the market. The company has been receiving many offers from banks and other insurance companies that are seeking to work together.
To provide a little relief for the trauma caused by the economic crisis, Cardiff promises to pay the salary and cover credit debts of its insurance policy holders should they lose their jobs. Cardiff entered the Turkish market six months ago.
Turkish citizens have shown an intense interest in the Cardiff products, said Cardiff Turkey CEO Yılmaz Yıldız.
The services offered by the company can be divided into four main groups: "The first consists of consumer loan protection products. These are sold together with consumer loans and get activated when one is unable to pay loans. The second is for credit cards. When those who have purchased this service lose their jobs, we pay their credit card balances with their interest in certain installments." Income security services are the third group. "When you become unemployed, your salary is deposited into a bank account as if you are still working," he said. "The last group consists of other consumer services, such as bill payments. We undertake all fixed payments when you lose job," he said.
Only permanent workers can benefit from the firm’s products, Yıldız said. "We step in when people lose their income earning power involuntarily and become jobless. We pay monthly installments for them."
Citing a standard service as an example, he said: "It generally covers 18 months, namely three unemployment periods, each consisting of six months. The period may extend as much as 36 months, but prices increase accordingly. We pay your loans during the unemployment period and you do not have any debt afterwards, as you have already purchased the service beforehand."
For an unemployed person to obtain income security worth 1,000 Turkish Liras for six months, a monthly premium of 25 to 30 liras is required, he said. Cardiff guarantees a different amount according to every customer, said Yıldız, who defined this method as "tailor-made."
"We design ’tailor-made’ products in line with our partners’ priorities and strategies. We shape these services together with our business partners according to variables, such as risk, loan type, maturity structure, customer segment and demographic."
Boom in insurance demand
The demand for consumer loan protection services started to increase with the impact of the global crisis, particularly after September 2008, "as people did not feel secure, and had concerns about the future," Yıldız said.
"The annual sale of credit card, corporate loan protection and income security services for unemployment rose from 10,000 to 40,000 over the period. We surpassed 50,000 in sales in December. We have started to receive a high amount of applications for loan payments, salary payments and covering credit card balances for the unemployed. Our year-end target for 2008 was 25,000 at the initial phase; however, we increased this figure to 100,000 and then 300,000 units."
Yıldız said that the firm had around 95 percent share of the market. The company has been receiving many offers from banks and other insurance companies that are seeking to work together.