INTERNAL CONTROL SYSTEM INSURANCE AGENTS AND SUSTAINABLE EFFICIENCY PROTECTION

Abstract

The desire of companies to establish strong control mechanisms due to economic fluctuations and changes in our country and in the world, and the efforts of fast-growing companies to institutionalize and to make their growth stable and sustainable have made the establishment of an internal control system a requirement. According to the data of the Union of Insurance and Reinsurance Companies of Turkey, the insurance sector has grown by 14.9% in 2017. 64.2% of the insurance activities in our country are made through insurance agencies. In order for the growth in the insurance sector to be stable and sustainable, it is essential for insurance agencies to establish their own internal control systems and to maintain their sustainable effectiveness. In this study, the internal control system and the matter of ensuring sustainable effectiveness were researched by using the interview and observation method in an insurance agency operating in 200 different locations in Turkey. The insurance agency, which was subject of the study, is one of the largest insurance agencies in Turkey in terms of premium production, number of personnel, sales channel distribution and organizational structure. The findings and expectations in the researched insurance agency serve as the scientific data for the other agencies operating in the insurance sector, when the fact that the other insurance agencies have similar structures with the researched insurance agency, and it is being mandatory to establish internal control systems in insurance agencies, the size of the researched insurance agency and the risks in insurance sector are taken into consideration.

Keywords

• Insurance
• Internal Control System
• Agency
• Human Resources
• Institutionalization
• Internal Supervision.