The Turkish insurance market, which saw growth of 24% in terms of premiums in the first 10 months of 2019, is expected to continue to expand this year, according to international professional services firm KPMG Turkey.
The Turkish insurance market, which saw growth of 24% in terms of premiums in the first 10 months of 2019, is expected to continue to expand this year, according to international professional services firm KPMG Turkey .
Opportunities will be in areas such as complementary health insurance, participation insurance or takaful, and digitalisation, reported Insurance Gazette citing KPMG's Business Overview 2020 - Insurance Report.
The sector, in which 62 insurance companies operate, produced premium revenue of around TRY54bn ($9.1bn) in the first 10 months of 2019 compared to the corresponding period of the previous year. For comparative purposes, for the full year in 2018, gross premiums totalled TRY54.6bn.
Mr Kerem Vardar, financial services industry leader at KPMG in Turkey, said that the government has provided strong support for the insurance sector. According to a report in Insurance Gazette, he said, “Its support in strategic areas such as the private pension system, agriculture and natural disaster insurance, stands out.
“The high proportion of the young working population is also an advantage.”
He said that KPMG also sees productivity increases that digitalisation will provide as an opportunity.
However, contraction in demand and geopolitical risks in major sectors, including automotive and construction, threaten the insurance sector. Nevertheless, there are signs that economic activity started to revive in the last quarter of 2019, and this trend will support insurance business.
At the same time, complementary health insurance is expanding while sales of credit insurance and surety insurance are kicking off. Cyber ??insurance is also increasing its importance day by day. In addition, in parallel with loan expansion, life insurance will continue to grow.