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Turkiye: Insurers present scenarios for insurance market

Source: Middle East Insurance Review | Jan 2023

The Insurance Association of Turkiye (TSB) has revealed that if the insurance penetration rate in the country was to rise from 2.2% to 3.2%, the insurance market would grow by 45% in terms of premiums and this growth will result in an increase of 3.5ppt increase or TRY197.8bn ($10.6bn) in Turkiye’s GDP.
 
In 2021, total premium generated in the Turkish insurance market increased by 27.5% to TRY105bn as compared to 2020. The insurance penetration rate was 1.3%, according to Swiss Re’s sigma report on world insurance.
 
TSB outlined the scenario in the report, titled ‘Turkish Insurance Sector Economic Impact Analysis’, prepared in collaboration with the Economic and Econometrics Research Centre of Bogaziçi University. The report highlighted the growth potential of the insurance and pension sectors and the steps to achieve growth.
 
Another scenario presented in the analysis is that of the positive divergence scenario, where the penetration rate is projected to increase from 2.2% to 4.5%, the total impact on the GDP is expected to be an increase of 7.46ppt amounting to TRY421bn.
 
TSB president Atilla Benli said that the insurance industry in Turkiye has become a rapidly growing ecosystem and is the dynamo of the national economy. Mr Benli said, “As of the end of 2021, the Turkish insurance and pension sector reached a total asset size of TRY427bn with a premium production of TRY104.9bn and total sum insured of TRY230tn. In the third quarter of 2022, the insurance sector’s asset size to TRY616bn and the total premium stood at TRY146.8bn, is a rapidly growing ecosystem.” M 
 
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