Insurances - Turkey

Turkey

The Insurances market in Turkey is projected to reach a gross written premium of US$11.35bn in 2024.
Among the different segments, Non-Life Insurances dominates the market with a projected volume of US$8.68bn in 2024.
On average, each person in Turkey is expected to spend US$131.60 on insurance in 2024.
When compared globally, it is evident that the United States has the highest nominal value, with a projected gross written premium of US$3,788.0bn in 2024.
The Insurances market in Turkey is anticipated to grow at an annual rate of 0.93% (CAGR 2024-2029), resulting in a market volume of US$11.89bn by 2029.
Once again, the United States is expected to generate the highest gross written premium globally, reaching US$3,788.0bn in 2024.
Turkey's insurance market is experiencing a surge in demand for health and life insurances due to increasing awareness about the importance of financial protection in uncertain times.

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Analyst Opinion

The Insurances market in Turkey has been experiencing significant growth and development in recent years. Customer preferences in the Turkish insurance market have been shifting towards more comprehensive coverage options, such as health and life insurance, due to increasing awareness of the importance of financial security and protection. Customers are also showing a preference for digital channels for purchasing insurance policies, leading to the rise of Insurtech companies in the market. Trends in the market indicate a growing demand for tailor-made insurance products that cater to specific needs of customers, such as travel insurance for frequent travelers and cyber insurance for businesses. Additionally, there is a noticeable trend towards bancassurance, where insurance products are sold through banks, as it provides convenience and accessibility to a wide customer base. Local special circumstances, such as regulatory changes and government initiatives to increase insurance penetration, have been influencing the insurance market in Turkey. The introduction of new regulations aimed at improving transparency and consumer protection has boosted customer confidence in the insurance sector. Underlying macroeconomic factors, including a growing middle class with higher disposable income and a stable economic environment, have also contributed to the development of the insurance market in Turkey. As the economy continues to grow, more individuals and businesses are seeking insurance coverage to mitigate risks and uncertainties.

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.