News Middle East21 Jan 2019

Turkey:SMEs reveal their views on insurance

| 21 Jan 2019

The Union of Chambers and Commodity Exchanges of Turkey (TOBB) and Ergo Insurance have released a report showing that 96.4% of small and medium-sized enterprises which have a workplace package insurance, which provides cover against many possible risks in the workplace, find the product useful.

The proportion of SMES which say the product is useful is proportional to how long the SMES have been operating. It is observed that the insurance satisfaction of SMEs that have been operating for 11-15 years is 100%, reported Insurance Gazette.

However, only 37.1% of the SMEs polled have workplace package insurance. 

The pilot study covering 1,200 SMEs was carried out by the independent research company Istanbul Ekonomi Arastirma. The study focused on SMEs operating in the fields of service and production in Istanbul, Ankara, Izmir, Bursa, Antalya and Kocaeli.

In addition, the study shows that 24.2% of SMEs that have been in business for up to a year have bought the workplace package insurance. This rate increases as the length of time the SMEs have been operating increases. For SMEs that have been operating for 6-10 years, insurance coverage is 35.4%; while for SMEs that have been operating for 16-20 years, insurance coverage is 43.7%.

62.7% of the SMEs which participated in the study prefer the agency channel for their insurance purchase, 23.2% choose banks, 8.3% buy cover online and 5.8% turn to insurance brokers.

Other findings include:

  • Only 12.3% of SMEs say they carried out a comprehensive risk analysis before they were insured.
  • The scope of products and services is the priority for SMEs in choosing an insurer, ahead of brand awareness and premium cost.
  • Asked about their most feared event, 20% of the SMEs cite fire; 14.7% list theft and 14.5% name earthquakes.
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