Property & Casualty Insurance Market in Turkey - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Property & Casualty Insurance Market in Turkey. The market is segmented by type (Home, Motor, others) by Distribution Channel (Direct, Agency, Bank, Broker, Other).

Market Snapshot

Turkey Property Casualty Insurance Market Overview
Study Period: 2016 - 2026
Base Year: 2021
CAGR: <6 %
Turkey Property Casualty Insurance Market Key Players

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Market Overview

  • Property & Casualty Insurance Market in Turkey is estimated to grow at a CAGR of approximately 6% during the forecast period.
  • Total premiums for the first 10 months of 2019 rose by 24% to TRY 54.4billion (USD 9.5billion), with real growth of 35.5% in the life branch and 11% for non-life. The Turkish insurance market, which is currently worth around USD 25billion, consists of three main segments: non-life, life, and private pensions. The non-life segment is valued at USD 10 billion, making up around 40% of the Turkish insurance market. The performance of the non-life insurance segment is directly linked to overall economic activity in Turkey, which has experienced% annual growth in the past decade, as the economy itself has grown at an impressive rate.
  • The Turkish insurance market ended 3Q 2019 with Gross Written Premium worth TRY 48.4 billion, 22.5% up year on year. At the same time, the appreciation of the Turkish Lira against the Euro has influenced the market rates calculated in European currency, translating them in a 38% positive change to EUR 7.8 billion. In non-life insurance, all main subclasses reported notable positive rates, property (15.8%), MoD (20.4%), MTPL (16%), GTPL (24%), accidents (26.5%), health (34%).
  •  In 2018, the Total assets of Non-Life insurance in Turkey is TRY 60.8 Billion, 20.2% increased from 2017, Net profit increased by 63.2% in 2018 compared to 2017. Non-life branch claims paid in 2017 were TRY 19,210 million, this amount increased by 25.9% in 2018 and reached TRY 24,180 million. In 2018, Non-life total premium production of TRY 47.7 billion and it increased by 20.2% from the previous year, the largest share of total premium production is 29% from Motor vehicle Third party liability Insurance (MTPL).
  • There is potential for further growth in non-life insurance, as non-life insurance penetration currently stands at only 1.3% of GDP much lower than the average for OECD countries. Most insurers operating in the segment are foreign-owned or partnered, showing it is a popular area of investment for foreign companies.

Scope of the Report

This report aims to provide a detailed analysis of the Property & Casualty Insurance Market in Turkey. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights on various product and application types. Also, it analyses the key players and the competitive landscape in the Property & Casualty Insurance Market in Turkey.

By Channel of Distribution
Direct
Agency
Bank
Others
By Insurance type
Home
Motor
Others

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Key Market Trends

Non-Life insurance market is the high in the Turkish insurance industry:

Turkish insurers potentially significant exposure to catastrophe risk from earthquake events, many domestic insurers have limited net exposure to large property and engineering business as result of surrendering the bulk of commercial risk to reinsurers and the majority of residential property risks being absorbed by the presence of the government-backed Turkish Catastrophe Insurance Pool(TCIP). Many insurers are more focused on underwriting motor business, which accounted for almost 50% of total non-life premiums in 2018. Underperformance of MTPL portfolios has been driven principally by regulatory and legal changes in recent years.

Turkey Property Casualty Insurance Market Key Trends

Motor Vehicle Insurance contribution is high in Non-Life insurance segment:

In 2018, The largest share of total premium production is 29% from Motor vehicle Third party liability Insurance (MTPL). In compulsory traffic insurance, which constitutes 94.6% of the motor vehicles third party liability branch, premium production (direct + indirect), which was TRY 12,498 million in 2017, increased to TRY 15,302 million in 2018, increasing by 22.4% in current prices compared to the previous year. The direct premium production of the motor vehicles third party liability branch increased from TRY 10,921 million in 2017 to TRY 12,591 million in 2018, increasing by 15.3% in current prices (4.2% decrease in real terms) compared to the previous year. In 2018, the share of motor vehicle third party liability branch in total premium production increased from 28% to 29%. In terms of compulsory traffic insurance, the share of the industry’s total production in 2017, which was 26.8%, rose to 28% in 2018. When the number of compulsory traffic sub-branch policies is analyzed, the number of policies in force, which was 17.3 million at the end of 2017, increased by 2.1% as of the end of 2018 and reached 17.7 million. However, despite the 2.9% increase in the number of vehicles, the insurance rate decreased by 0.6 points compared to the end of 2017 and decreased to 77.5%.

Turkey Property Casualty Insurance Market Growth Rate

Competitive Landscape

The report covers the major players operating in the Property & Casualty Insurance Market in Turkey. The market is fragmented, only top 3 companies hold around 30% of the market share. The market is expected to grow the coming years due to regulatory changes and many other factors drive the market in the forecast period.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Porters 5 Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 PESTLE Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Channel of Distribution

      1. 5.1.1 Direct

      2. 5.1.2 Agency

      3. 5.1.3 Bank

      4. 5.1.4 Others

    2. 5.2 By Insurance type

      1. 5.2.1 Home

      2. 5.2.2 Motor

      3. 5.2.3 Others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Mergers & Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 Allianz Sigorta AŞ

      2. 6.3.2 Anadolu Anonim Türk Sigorta Şirketi

      3. 6.3.3 Aksigorta AŞ

      4. 6.3.4 Axa Sigorta AŞ

      5. 6.3.5 Sompo Japan Sigorta AŞ

      6. 6.3.6 Ziraat Sigorta AŞ

      7. 6.3.7 Mapfre Sigorta AŞ

      8. 6.3.8 HDI Sigorta AŞ

      9. 6.3.9 Halk Sigorta AŞ

      10. 6.3.10 Güneş Sigorta AŞ

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Property & Casualty Insurance Market market is studied from 2016 - 2026.

The Property & Casualty Insurance Market is growing at a CAGR of <6% over the next 5 years.

Allianz Sigorta AŞ, Anadolu Anonim Türk Sigorta Şirketi, Aksigorta AŞ, Axa Sigorta AŞ, Sompo Japan Sigorta AŞ are the major companies operating in Property & Casualty Insurance Market.

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