Turkiye: Insurers aim to improve penetration rate to 3%
The insurance penetration rate in Turkiye reached 2.3% for the first time in the last 10 years and the country is moving towards the goal of reaching 3%, according to Mr Ugur Gulen, who was re-elected as the president of the Insurance Association of Türkiye (TSB) in April 2024.
In a statement delivered at the association’s general meeting on 18 April, Mr Gulen said that premium production increased by 105% in 2023 to TRY483bn ($14.9bn) compared to 2022. As for the insurance sector’s expectations for 2024, Mr Gulen said that the target was to reach a total premium volume of TRY740bn. The rates of increase are high given the inflation rate in Turkiye.
He said that there were 71 insurers operating in Turkiye as of the end of 2023, including 10 companies that entered the sector in the last three years.
Mr Gulen said, “We will continue to provide added value to our country’s economy by working intensively on the issues of increasing insurance rates, earthquakes, sustainability, and education, which we prioritise for our sector.”
2024 agenda
Mr Gulen also said that the insurance industry was seeking ways to transition to free tariffs, especially to solve problems in traffic insurance (compulsory motor third-party liability insurance).
In addition, the TSB will continue to ensure that fire, health, life, and financial lines maintain a sustainable structure.
The association will also contribute to revisions to regulations after the insurance law and the data protection law are passed. It aims to publish a “Green Transformation Sustainability Guide” in the second quarter of this year.
