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As of late 2013, almost all trends in Turkey´s insurance sector are positive. In essence, a market that is large in absolute terms, but underdeveloped by many metrics, has the capacity to sustain superior (and probably double-digit) growth for years. This is true of no other national market for insurance in Central and Eastern Europe and of few others in the rest of the world.
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The overall economic environment is germane, with steady and moderate growth and reasonably low inflation. Both major segments are open to competition by major multi-nationals, meaning that world best practice is being brought to Turkey. In any event, the leading indigenous companies are substantial organisations that generally have the advantage of being affiliated with one or other of Turkey's leading banking/financial services groups.
The changes are most dramatic in the life segment. After several years of stagnation, we are looking for premiums to rise by nearly 30% in 2013 and to sustain double-digit growth through the forecast period. An obvious catalyst for this are the latest changes which significantly improve the attractiveness of private pensions as a conduit for organised savings. Although pension payments are not included in the figures for premiums, the development of pensions provides the leading companies with a marketing opportunity, which they are exploiting. The details differ from case to case, but the companies are promoting bancassurance and other distribution, and developing innovative products. In essence, the life insurers are finding increasing numbers of customers - both households and corporates - who are willing and able to use life insurance.
In the much larger non-life segment, the main trend is a continuing rise in prices and rates in most lines. The result is that non-life penetration is increasing quite rapidly. As is the case in the life segment, initiatives by particular companies in relation to product development and distribution
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Source : businessmonitor.com
Hit : 1054
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