Insurance
From The Report: Turkey 2012
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The Insurance chapter examines Turkey’s relatively small insurance market, which has seen steady growth with the expansion of the nation’s GDP. The sector is dominated by banks, which provide the most accessible outlets for customers. The sector is extremely crowded and very competitive, which has made it difficult for insurers to grow their business. Despite the challenges, however, gross written premiums increased some 21.5% in 2011, to TL17.2bn (€7.3bn). The sector is dominated by the non-life business, however, the government has expressed its desire to grow the life segment, encourage savings, and thus create a much-needed pool of institutional money to finance current accounts. This could see important changes in the sector in the coming years.

Articles from this Chapter

Overview

Cleared for take-off: Strong growth potential continues to attract foreign providers
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As a relatively small market in a rapidly growing economy, the insurance sector in Turkey has significant room for expansion. Indeed, the large number of foreign players that have entered the market over the past decade signals opportunities for growth. While low pricing has been a challenge – particularly in the non-life segment – underwriting practices are improving and core profits are expected to rise. Distribution channels are also shifting, as banks look to expand from their traditional…

Analysis

Opening the door: Government-driven changes are set to make pensions more attractive
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The concept of private pensions is relatively new in Turkey, with the first private scheme having been introduced only in 2003. Since then, the system has grown rapidly, although it is still small relative to the size of the economy. Furthermore, it is expected to expand in the coming years, as the government has introduced legal changes to make pensions a more attractive form of savings for retirement. THE BASICS: Turkey’s private pension plan is a voluntary, defined contribution system…