News Middle East18 Aug 2019

Turkey:Mixed outlook for insurance market this year

| 18 Aug 2019

A mixed outlook is expected for the Turkish insurance sector this year.

On the one hand, the sector's financial income will be strong in 2019 due to high liquid assets that will allow insurers to successfully tap investment opportunities during the year, according to an article in Insurance Gazette citing a KPMG report.

On the other hand, contraction in motor vehicle sales is seen as the most important factor that will limit insurers' revenues in the coming period. Motor accounts for almost half of the insurance sector's premium revenue.

Furthermore, unpredictable increases in costs may occur due to the high volatility in exchange rates and inflation.

In addition, the Turkish insurance sector is having difficulty realising its potential due to the low awareness of the opportunities it offers.

One area of opportunity is complementary health insurance which the authorities aim to encourage to cover health services not covered by the Universal Health Insurance (Genel Saglik Sigortasi) system. Other likely growth areas are export credit insurance and surety insurance.




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