Turkish general insurance market worth $11.25 billion in 2025
The rise reflects the overall post-pandemic economic recovery in the country
Turkey’s general insurance market will be worth US$11.25 billion in 2025, up from $9.72 billion in 2020, according to data analyst GlobalData.
The rise represents a projected compound annual growth rate (CAGR) of 8.83 per cent over the next few years, in terms of gross written premiums (GWP).
GlobalData says the rise will be driven by credit expansion and government stimulus programmes in the country. Consequently, Turkey’s economy is expected to have grown by 8.5 per cent in 2021, compared with the sluggish 1.8 per cent growth in 2020 due to the coronavirus pandemic.
Inflation and currency volatility will limit the growth of Turkish insurance
However, the general insurance industry in the country is expected to grow at a slower pace compared to the overall economic picture due to the continuous depreciation of the Lira. The industry is expected to have grown by just 12.4 per cent in 2021, compared with the 17.7 per cent growth in 2020.
According to Sutirtha Dutta, Insurance Analyst at GlobalData: “The general insurance industry will expand over the next few years, driven by economic growth as well as favourable government and regulatory policies. However, the profitability of insurers remains shadowed due to escalating inflation and constant volatility of domestic currency against the Euro and depreciation against the US dollar.”
The Personal Accident and Health sector – which constitutes the third largest segment of the Turkish insurance market at 18 per cent of general insurance GWP in 2020 – is expected to grow at a CAGR of 7.6 per cent between 2020 and 2025. The sector grew by 15 per cent in 2020, largely driven by rising risk awareness due to the pandemic.