The contribution of agencies to premiums in Turkey's non-life sector decreased slightly to 64% in 2017, compared to 69% in 2016, according to data released by the Turkey Insurance Association (TSB) on the performance of the various insurance distribution channels last year.
The 64% was the lowest contribution rate by agencies in the last 10 years, reports Insurance Gazette citing the TSB statistics. In 2008, the market share of agencies was over 70%.
For motor third party liability insurance, agencies accounted for 83% of premiums last year, down from 93% in 2016. The 10 percentage point plunge contributed to the overall decline in contribution by the agency channel. This was because motor third party liability insurance accounted for 28% of the total premiums in the insurance industry.
In the life branch, however, the share of agencies increased slightly to 6.2% last year compared to 5.5% in 2016.
According to the statistics for participatory insurance, 83% of contributions in general participatory insurance were generated by agencies. However, almost all of the contributions for participatory life business was generated through bancassurance.