Turkey Insurance Report 2012
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.
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.
Contents
Executive SummaryTable: Total Premiums, 2008-2015
Key Insights And Key Risks
SWOT Analysis
Turkey Insurance Industry SWOT
Turkey Political SWOT
Turkey Economic SWOT
Turkey Business Environment SWOT
Life
Central And Eastern Europe Life Sector Overview
Table: Central And Eastern Europe Life Premiums, 2008-2016 (US$mn)
Turkey Life Sector Update
Table: Life Insurers’ Market Share
Life Industry Forecast Scenario
Table: Total Life Premiums, 2009-2016
Growth Drivers And Risk Management Projections
Population
Table: Insurance Key Drivers, Demographics 2009-2016
Non-Life
Central And Eastern Europe Non-Life Sector Overview
Table: Central And Eastern Europe Non-Life Premiums, 2008-2016 (US$mn)
Turkey Non-Life Sector Update
Table: Non-Life Insurers’ Market Share
Non- Life Industry Forecast Scenario
Table: Total Non-Life Premiums, 2008-2015
Growth Drivers And Risk Management Projections
Macroeconomic Outlook
Table: Turkey Economic Activity, 2008-2015
Political Stability Outlook
Table: Europe Security Risk Ratings
Healthcare
Health Insurance
Epidemiology
Table: Insurance Key Drivers, Disability-Adjusted Life Years 2009-2016
Motor
Table: Insurance Key Drivers, Autos 2005-2015
Tourism
Table: Insurance Key Drivers, Tourism 2005-2015
Islamic Finance
Insurance Risk/Reward Ratings
Table: Turley’s Insurance Risk/Reward Rating
Table: Central And Eastern Europe Insurance Risk/Reward Ratings
Competitive Landscape
Competitive Landscape Analysis
Major Players In Turkey’s Insurance Sector
Company Profiles
Local Company Profiles
Aksigorta
Anadolu Sigorta
Regional Company Profiles
AEGON
Allianz
Aviva
AXA
BNP Paribas Cardif
ERGO
Eureko
Generali
GRAWE
Groupama
HDI-Gerling/Talanx
ING
KBC Group
MetLife ALICO
Prudential Financial
QBE
RSA
NIQA
Vienna Insurance Group
Zurich
BMI Methodology
Insurance Risk/Reward Ratings
Table: Insurance Risk/Reward Indicators And Rationale
Table: Weighting Of Indicators Skip to top