Turkey: Interpretation Of Big Data By InsurTechs

Last Updated: 6 November 2018
Article by Pelin Baysal and Muzaffer Atar

Technology shows its transformative and disruptive impact on virtually every economic field. The insurance market is no exception and can no longer remain closely reliant on its conventional operational tools. Data sets that are in large volumes and that are hard to process using traditional data processing methods ('Big Data') are frequently argued to have the potential to replace these traditional tools by providing efficacious equivalents.

As a reflection of the conventional operation, Insurance Chapter of Turkish Commercial Code gives utmost importance to questions posed by insurers and the answers provided by the insured, in order to ascertain the foundation of an insurance contract. Accordingly, written or verbal questions directed to the prospective insured and the information given in response are deemed to concern substantial issues which affect the insurer's decision when providing coverage and calculating the corresponding premium. A prospective insured's duty to give accurate and true information is not restricted within the four corners of the insurer's questions. If there are issues which the prospective insured can be reasonably expected to know that would be regarded substantial by the insurer, the prospective insured is under a duty to proactively disclose these issues without waiting for the insurer's questions. Failure to give accurate and true information to the insurer on substantial issues has serious consequences, which would include an adjustment of the premium and avoidance by the insurer of the insurance contract.

Questions used as a means of assessing the associated risks by the insurers seem to have already been affected by the revolutionary impact Big Data has had on the sector. Indeed, insurers have used questions to understand the risks and draw the limits of the coverage but now this trend has started to give way to the ever-growing usage of Big Data for the same goal. Now insurers are looking into the collected data to find the answers to the potential questions. This saves time and provides convenience to all market players. Think of an insurer whose database provides a positive correlation between the people who purchase coverage against fire risk for their apartments and the increasing tendency of these people to be or become smokers at some point. If utilised correctly, this piece of information would also provide a better chance for the insurer to assess the risks in selling health insurances to those who have already bought fire insurance. The similar links between the risks detected in relation to differing areas of insurance have been increasingly drawn by insurers. As the databases enlarge and the methods to draw conclusions based on the data develop, the questions will inevitably become less necessary. Undoubtedly, this makes finding the right insurance less time-consuming for insureds and helps insurers to more accurately quote to their consumers by assessing the risks accurately.

On the other hand, there may be shortcomings in the statistics backed by Big Data. Indeed, one can try to analyse and understand why smokers are more likely to purchase fire insurance than non-smokers, yet the conclusions may not fit for all potential customers. This may lead to higher premiums for those who are exceptions to the rule. At this point, technology can come to help with striking the right balance between the risk and the applicable premium. Taking health insurance as an example, there are many factors which affect how frequently an insured uses his health insurance, such as how often they exercise and if they have a healthy diet. Assuming that people would be willing to share their personal data as to how often they exercise in exchange for lower premiums, there are many wearable technology products that could provide reliable data to insurers as to the exercise routines of the insureds. With new innovative ways to interpret Big Data, all market participants would be served better.

Interpreting the data correctly is not the only way that technology can be used. These tools also provide better tracking of the insureds' patterns, which closely relate to the risks. For car insurance policies, kilometres driven and the number of instances of overtaking the driver makes are perceived as increasing the chances for them to be involved in accidents. One can also add to the list how aggressive the driver is based on the average gas consumption of the car. These variables can be tracked and sent to insurers to closely monitor the risk and adjust the premium.

Usage of technology to capture data and artificial intelligence to draw conclusions based on these also provide opportunities to develop new insurance products. Being able to monitor the activities of the insureds creates incentives to limit the insurance to only when there is an activity which involves the risk in question. While this option seems to have been realised by some start-ups, who provide pay-as-you-go insurance policies such as car insurance that can be purchased for periods as short as an hour via smart phone apps, this seems an area ripe for development.

Technological developments seem to have already revolutionised the methods of risk assessment in the insurance sector. It would not be surprising to see, in the near future, the invention of new tools that will become part of our lives and provide better economic terms to both insurers and insureds. The law may further evolve in the long run in a way that would decrease the importance attributed to the prospective insured's duty to disclose accurate and true information to the extent that the required information in the assessment of risk and corresponding premium would already be known to the insurers.

First published by IBA – Insurance Committee Newsletter, 20.08.2018

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Kolcuoglu Demirkan Kocakli Attorneys at Law
Herdem Attorneys at Law
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Kolcuoglu Demirkan Kocakli Attorneys at Law
Herdem Attorneys at Law
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions