Market Trends of Property and Casualty Insurance Industry in Turkey
This section covers the major market trends shaping the Turkey Property & Casualty Insurance Market according to our research experts:
Non-Life Insurance Market is the Highest 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 58% of total non-life premiums in 2020. Underperformance of MTPL portfolios has been driven principally by regulatory and legal changes in recent years.
High Growth of Gross Premiums Written by Non-Life Insurance Companies in Turkey
Considering the large penetration of non-life insurance in Turkey compared to life insurance, the non-life insurance companies both local and international operating in the country have witnessed significantly higher growth in the past few years. Although the COVID-19 pandemic had a negative impact on the total gross written premiums of non-life insurance, the market largely recovered in 2021. The trend of growth is also expected to sustain during the forecast period owing to the current conditions in the country.
