According to Giray Velioğlu, director general of Yapı Kredi bank’s insurance arm, banks have a key role in encouraging growth in the insurance sector. “I believe the Treasury will display an approach within the scope of the Insurance Law, in parallel with the dynamics of the sector,” he said.

In Turkey, activity in the insurance market is coordinated by major insurance companies that make contracts with both smaller insurance agencies and the insurance branches of banks to sell policies.

However, tensions recently emerged in the sector when insurance agency representatives put pressure on the Treasury to limit the banking sector’s activity in the insurance market, arguing that banks should be restricted from offering a variety of comprehensive insurance policies.

Insurance service sales from banks impinge on insurance agencies’ ability to operate, a number of agency officials told daily Hürriyet in a recent interview, adding that institutions should operate in their own fields.

Insurance companies, on the other hand, disagree with agency representatives, arguing that the number of insured people has increased thanks to the banking sector’s involvement in the insurance market.

“Thanks to the banks, the insurance business can spread to a wider field,” said Mustafa Su, director general of Anadolu Sigorta, adding that the ability to offer more choices to customers is a positive step for the growth of the sector.

Ragıp Yergin, director general of Liberty Sigorta, agreed. Banks have an important role in contacting customers and promoting insurance products, he said.

An insurance regulation should have a main goal, which is to grow the insurance market, according to Uğur Gülen, director general of Aksigorta.

“What we need to do in any environment where the proportion of those who are insured is low is to increase the number of distribution channels in order to reach more customers,” Gülen told Hürriyet