The Insurance Association of Turkey (TSB) has drawn up reform measures that would be undertaken until 2024, aimed at increasing the insurance penetration rate by developing insurance products and boosting the insurance sector’s contribution to the Turkish economy.
TSB president Atilla Benli said, “Although the insurance penetration rate in our country increases every year, it is possible for it to reach higher levels. We aim to explain insurance coverage better to our 85m citizens, for them to be insured and to increase their insurance literacy rapidly. While the penetration rate is 7.4% worldwide, it is around 2.2% in our country. In order to increase this rate, we have drawn up our road map for the Vision 2024 project.” He said that the TSB would take firm steps forward on this path.
With the implementation of the planned reforms, the goal is to increase the gross premium production to TRY299bn ($20bn) and to increase the penetration rate to 3.5% by 2024, reported Insurance Gazette citing the TSB. In comparison, total premiums in the Turkish insurance market stood at TRY105.3bn in 2021.
Mr Benli explained, “With this project, we have determined the steps to be taken by pointing out the structural difficulties and barriers that prevent our sector from realising its potential. We created reform ideas by analysing Turkey’s needs, as well as best practices and examples from around the world. By making detailed calculations, we set forth our expectations regarding the 2024 premium production and the number of policies in the relevant branches.” M