Turkiye: Takaful contributions soar by 109% in 1H2022

Source: Middle East Insurance Review | Sep 2022

The total contributions generated by participation insurance or takaful in Turkiye increased by 109.1% to TRY4.96bn ($276.4m) in 1H2022, compared to the corresponding half of last year, outstripping the market’s 93% growth rate where GWP reached TRY90.9bn, according to statistics from the Insurance Association of Turkiye. Taking inflation into account, the insurance market expanded by 8%, reported Sigorta Medya.

Takaful contribution accounted for around 5.5% of the market GWP in 1H2022, up from 4.3% in 2021.

The high premium growth rates are attributed to the rocketing inflation rate in Turkiye, which hit nearly 80% in recent months, fuelled by the economic impact of Russia president Vladimir Putin’s invasion of Ukraine, as well as the Turkish lira’s continued decline. The currency weakened 44% against the US dollar last year and slid by another 27% this year. M

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