Non-life insurances - Turkey

Turkey

The Non-life insurance market in Turkey is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is expected to reach US$8.68bn in 2024.
This indicates a positive trend in the demand for non-life insurance products in the country.
Furthermore, the average spending per capita in the Non-life insurance market is projected to amount to US$100.60 in 2024.
This figure reflects the average amount of money spent by each individual on non-life insurance policies in Turkey.
The market is also expected to experience a steady annual growth rate of 0.07% between 2024 and 2029.
This growth rate, measured by the compound annual growth rate (CAGR), suggests a positive outlook for the non-life insurance market in Turkey.
As a result, the market volume is projected to reach US$8.71bn by 2029.
In terms of global comparison, it is worth noting that the United States will generate the highest gross written premium in 2024, amounting to US$2,500.0bn.
This demonstrates the significant scale of the non-life insurance market the United States compared to other countries.
Overall, these numbers and projections highlight the potential and growth prospects of the non-life insurance market in Turkey.
Despite the economic challenges faced by Turkey, the non-life insurance market continues to grow steadily due to increasing awareness and demand for insurance coverage.

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Analyst Opinion

The Non-life insurances market in Turkey has been experiencing significant growth and development in recent years. Customer preferences in the Non-life insurances market in Turkey are shifting towards more comprehensive coverage options that provide protection for a wide range of risks. Customers are increasingly seeking customized insurance solutions that meet their specific needs and offer added value beyond basic coverage. Trends in the market indicate a growing demand for digital insurance services and online distribution channels. Insurers in Turkey are leveraging technology to streamline processes, enhance customer experience, and offer innovative products. Additionally, there is a trend towards greater transparency and regulatory compliance in the market, which is driving trust and confidence among customers. Local special circumstances in Turkey, such as regulatory reforms and increasing awareness of risk management, are influencing the dynamics of the Non-life insurances market. The government's efforts to modernize the insurance sector and improve consumer protection are creating a more competitive landscape and encouraging market players to enhance their offerings. Underlying macroeconomic factors, including economic growth, rising disposable incomes, and urbanization, are contributing to the expansion of the Non-life insurances market in Turkey. As the economy continues to develop and the population becomes more affluent, there is a growing need for insurance products to safeguard assets and mitigate various risks. This presents opportunities for insurers to innovate and diversify their portfolios to cater to the evolving needs of customers in the market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.