The Turkish insurance sector demonstrated significant growth in 2024, with total profits reaching TRY31.8bn, a 59.46% increase compared to the previous year, according to KPMG, a global professional services firm.
KPMG, in its 2025 "Insurance Sectoral Overview" report, said that profits in the non-life insurance branch increased by 11.78% to TRY5.8bn in 2024 compared to TRY5.2bn in 2023. The life insurance branch saw a significant 76.22% jump to TRY26.0bn in 2024 from TRY11.7bn in 2023. The sectoral distribution of total profits in 2024 was 81.77% from life insurance and 18.22% from non-life insurance.
The Turkish insurance sector increased its gross premium production to TRY838.5bn ($20.5bn), which rose by 73% in 2024 compared to the previous year, and the total is expected to exceed TRY1.2tn in 2025. Life insurance premiums grew by 76% and non-life insurance premiums by 72% in 2024. The sectoral distribution was 11.9% from life insurance and 88.1% from non-life insurance.
(The percentage increases mentioned are nominal rates. According to TurkStat data, the 12-month average inflation for 2024 was 58.51%.)
74 insurance companies
According to the report, a total of 74 companies were operating in the Turkish insurance sector as of the end of 2024. A breakdown of these companies shows that 50 companies, or 68%, operated in the non-life branch, 20 or 27% in the life and pension branch, and the remaining four or 5% in reinsurance. While the number of companies in the non-life and life and pension branches increased by one each during 2024, the number of companies in the reinsurance branch remained unchanged.
Growth potential
KPMG said that while the Turkish insurance sector exhibits a real growth potential above global averages, it faces a profitability challenge, particularly in 2025, due to potential changes in inflation and interest rates.
While investments in artificial intelligence and digitalisation are expected to increase, these developments are likely to reduce costs, increase competition, and consequently, put pressure on profit margins.
Disruptive technologies, such as autonomous vehicles and the Internet of Things, are expected to cause a contraction in the traditional motor vehicle insurance market, prompting insurance companies to focus more on commercial branches and next-generation risks.
In this transformational environment, life insurance policies, which have low penetration rates in Turkey, liability insurance policies, policies that cover consequential damages such as lost profits, and the rapidly growing global cyber insurance market offer significant growth opportunities for the sector.
KPMG said, “However, the Turkish insurance sector also faces significant external challenges such as geopolitical tensions, macroeconomic instability, political uncertainty, and the increasing risk of natural disasters caused by climate change.
“Despite all these risks, the Turkish insurance market remains a fertile area with significant growth potential for both local and international investors, given its developing economy, dynamic and young population, its ability to adapt to technological innovations, and existing insurance protection gaps.”
The sector's long-term vision includes ambitious goals such as increasing insurance penetration, achieving full coverage in compulsory insurance, and increasing the share of the Private Pension System (BES) in the financial ecosystem.
KPMG also said, “For the sector to realise its potential, the employment and development of competent human resources capable of adapting to the digitalisation process is essential; Turkey's young and technology-savvy population represents a significant advantage in this regard.”