|
|
 |
|
Viewing report
|
|
|
|
Turkey Insurance Report 2012
Business Monitor International, Dec 2011, Pages: 82
Turkey’s insurance sector is unusual in the context of Central and Eastern Europe – and, indeed, the Middle East – in that it is both large in absolute terms and rapidly growing. Unsurprisingly, this fact has not been missed by corporate planners at multi-national insurance companies – with the result that most of the regional (Central and Eastern European) and global players have a presence. There are a number of well-entrenched, and quite substantial local insurers – most of whom have an association with the major conglomerates and/or banking groups in Turkey. Unlike many of their counterparts in the Middle East, though, the local companies are not operating in the insurance sector for its own sake: if they can identify an opportunity to do a deal with a multi-national company (in relation to shareholding or product distribution, say), they will seize it. Unlike in much of Central and Eastern Europe, there is no titanic former state-owned (near) monopoly insurer that continues to dominate the sector.
The main problem comes from the nature of the non-life segment. It is crowded in that there are typically 30 or so players who are active in any one line. The regulator does not necessarily set rates and tariffs at attractive levels. For some lines, brutal competition means that business is written on terms that are favourable for the customer, not the insurer and its shareholders. Profitability has been in a downwards trend for the last three years or so. Because of the undeniable growth prospects, Turkey is not a market from which well capitalised multi-nationals or long-established local groups want to depart.
A secondary challenge is that the number of people who are using life insurance appears to be growing less rapidly than was the case in 2009 – 2010. The trade association’s report for 2010 indicated that the number of lives covered had been rising – from a low base – at low double-digit rates. The latest figures for mid-2011 suggest that the growth rate has slipped to low single-digit rates. The number of policies for which premiums are being received, though, has soared. Nevertheless, Turkey is clearly a country in which the benefits of life insurance are widely understood by actual and potential customers.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
