Magazine Table of Contents
Turkey is in a curious position in terms of its development potential. It has a population of over 84m people, renowned for being hard working and productive - and yet the vast potential for the development of the insurance market has not been realised, in part because of macroeconomic factors. Regulating such an insurance environment calls for agility and skill.
Life insurance business in Turkey continues to register progress despite exceptional economic challenges.
The odds seem stacked against Turkey’s non-life insurance industry, particularly with the depreciation of the lira and poor underwriting performance last year. But Turkish insurers are used to challenging conditions and the country’s economy and non-life sector are still growing steadily, creating opportunities for insurers to bounce back.
The Turkish reinsurance market, despite the challenges from the COVID-19 pandemic, has remained strong and resilient over the past year and remains positive for the future. We spoke to Milli Re’s Mr Fikret Utku Özdemir about the challenges in the market and the future of the industry.
The Turkish operating environment continues to be volatile, with the lira losing more than 40% of its value against the US dollar and inflation running at more than 20% in the last quarter of 2021. It remains to be seen whether the six listed Turkish insurers will be able to overcome the challenges and maintain 2020’s double-digit growth momentum for GWP and net profit in 2021.