Insurance
From The Report: Turkey 2015
View in Online Reader

While the global insurance industry saw growth slow over the course of 2013 and 2014, Turkey’s insurance sector displayed resilience, making the country an attractive market for investment and expansion. Despite fluctuations in other sectors and a depreciation of the local currency, in real terms Turkey’s insurance sector experienced significant growth in both the life and non-life segments. Overall, the expectation is of continued premium growth in 2015, with companies also taking greater control of their technical results, boosting profitability. Pensions will likely continue seeing positive growth as well, although potential uncertainties may impact consumers negatively in the period up to elections in 2015. In addition, the diversity of products on offer is set to expand.

This chapter contains interviews with Mehmet Bostan, General Manager, Vakıf Emeklilik, and M Uğur Erkan, CEO, Anadolu Hayat Emeklilik.

Articles from this Chapter

Overview

Turkey’s insurance sector to see greater product diversity and continued premium growth
OBG
plus

Whereas the global insurance industry saw growth slow over the course of 2013 and 2014, Turkey’s insurance sector displayed resilience, making it an attractive industry for investment and expansion opportunities. Despite fluctuations in other sectors and a depreciation of the local currency, in real terms Turkey’s insurance sector experienced significant expansion in both life and non-life segments. Consolidation One of the key drivers of growth in the sector has been the rise in mergers and…

Analysis

Pensions boom: Newly passed legislation ushers in a new era for private pension contributions
OBG
plus

Private pensions showed significant growth in Turkey over the course of 2013 and 2014, following implementation of a new law that introduced government matching of contributions for private pension. With the new law, designed as an incentive scheme to encourage more contributions into the system, as of January 1, 2013 the government matches 25% of individual contributions to the pension system. Over the course of 2013 alone, 1m individuals signed on to the new pensions scheme, with over 5.1m pension…

Interview

Mehmet Bostan, General Manager, Vakıf Emeklilik
OBG
plus

Interview: Mehmet Bostan Since its implementation in early 2013, how has the government’s matching scheme affected growth of the private pensions industry? MEHMET BOSTAN: We can confidently say that the government’s matching scheme in early 2013 affected the private pension industry in a very positive way. The private pension system started to make a huge impact on the Turkish economy, especially after 2013. Since the government introduced a 25% contribution to each pension plan at the beginning…

Interview

Getting involved: OBG talks to M Uğur Erkan, CEO, Anadolu Hayat Emeklilik
OBG
plus

Interview:M Uğur Erkan What effect have multinational insurance firms had on the growth prospects of domestic players? M UĞUR ERKAN: Turkey’s positive economic growth, favourable demographics and low penetration rates have drawn the attention of local and multinational players to the Turkish insurance sector. International companies, in particular, are increasingly looking to take advantage of these factors. In fact, the foreign share of total paid-in capital in the life and pension business…

Analysis

Turkey’s government seeks to develop takaful insurance by launching state-owned Islamic banks
OBG
plus

Sharia-compliant insurance, or takaful, is set to grow in Turkey, with its predominantly Muslim population showing increasing interest in Islamic finance products and the government keen to support their growth. Insurance of any kind can be a hard sell in Turkey, with the population generally averse to insurance cover and penetration levels as low as 1.4%, according to some estimates. Takaful also has a minimal profile in the Turkish market at present. The two firms that offer Islamic insurance products,…