Turkey’s insurance market grew by 19.3% in 2020 to TRY 82.6bn. Seen as the 9th with the highest potential in the world, the market is expected to reach TRY 100bn this year.
Altinc Yilmaz, Howden Turkey Middle East and Africa Regional CEO, evaluated the Turkish and global insurance market. “Insurance companies’ total payments last year was USD 84bn, USD 30 bn of which is COVID-related. We expect the amount to reach USD 60bn if the closures continue,” said Yilmaz.
Yilmaz stated that Turkey recovered from the pandemic faster than most countries. “After the first shock, recovery in the insurance sector and the movement in auto and housing sales was fast,” he said. Turkish insurance sector closed the year with 19.3% growth. The expected volume of TRY 100bn for 2020 was down to TRY 82.6bn due to the pandemic. Last year’s target is expected to be met this year, Yilmaz said. “A total of TRY 1.7m in payments were made in the pandemic year. As of August, premium production increased by 17% compared to the same period last year, reaching TRY 43m. This shows that the sector is growing in real terms. The Turkish insurance sector has grown stronger from this difficult period,” Yilmaz said.
The cyber risks market can grow 4 times in 4 years
Stating that the demand for cyber risks has risen, Yilmaz commented, “With the companies moving their working patterns into a digital environment and providing their employees with the opportunity to work remotely and access company systems, the cyber risks became more prominent revealing the underlying cybersecurity vulnerabilities. The market value, which was USD 7bn last year, is expected to reach USD 25bn in 2025. Once again, trade receivable insurance, which protects firms from losses arising from collection issues and was on the agenda together with the epidemic diseases being included under health insurance policies. COVID-19 led health and welfare issues to be among the priorities and main agenda items of both society and insurance companies. This year, we will serve in the fields of space and aviation, maritime and transportation.”
Ready for new acquisitions in Turkey
Yilmaz added that they offer insurance services to Turkish companies investing overseas. “Turkey’s biggest conglomerates and construction companies have chosen us as their brokers. We have become a major player in Turkey in 3.5 years and now aim for market leadership. We are open to making new investments in Turkey. We may make acquisitions as well,” said Yilmaz.
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