Turkey Insurance Sector

Turkey Health and Medical Insurance 2021

TURKISH INSURANCE SECTOR STARTS 2021 HOPEFUL

• In 2020, the insurance sector, where demand for insurance products has increased, has diverged from many other sectors affected by Covid-19. This year, the sector is expected to grow in real terms.

• Industry representatives are very hopeful, especially in the second half of 2021. According to 11-month Statistics published by the Insurance Association of Turkey (TSB), the sector grew by 20.1 percent in the 11 months of 2020. Excluding inflation, real growth in the sector was 5.3 per cent. January-November growth in non-life was 17.5 per cent (real 3 per cent), while growth in the life industry was 33.5 per cent (real 17.1 per cent). At a time when coronavirus is affecting the country, the industry's growth of about 20 percent is indeed significant. Besides Life, general damages, fire and natural disasters and rapid growth in health branches are also effective in the growth of the sector.

• Looking from the profitability front, the non-life sector increased its technical profit by 97.5 percent to TL 7.2 billion in the first 9 months of 2020 due to the decline in losses compared to the same period of 2019. However, different interpretations of technical profitability in the sector also attract attention. Turkey iHealth, who stressed that income (financial income) transferred from the non-technical division is effective in profitability, also draws attention to the ‘provision' burden carried on the sector in 2021 and beyond.

TURKISH INSURANCE SECTOR STARTS THE MATCH WITH A 1-0 LEAD

As for the expectations in the sector for 2021, it is an undeniable fact that the insurance sector depends from the core on the growth in the economy. The economy, whose growth rate has declined in 2020 due to the impact of Covid - 19, is expected to grow by 4-5 percent this year. This means that the insurance sector also " started the match 1-0." However, it is necessary to note that during the pandemic period, demand for many insurance products, especially increased insurance awareness and health (especially complementary health), is alive. In 2021, new products with ‘vaccine coverage', cyber and liability insurance will also open a new lane in front of insurance companies. Apart from these factors, the expectation that the effects of Covid-19, along with widespread vaccination in the community, will decrease in the 2nd half of the year, also raises hopes. When we look at it in terms of profitability, the landscape is a little different. Technical profits are expected to decrease due to both the expected increase in losses this year and the impact of competition in the sector.

REAL GROWTH IN TURKEY INSURANCE SECTOR SHOULD BE 7-8 PERCENT

Turkey iHealth Insurance agency CEO is hopeful for the second half of 2021. "As a sector, of course, we are dependent on the economy; but the sector is healthy in 2021, that is, by paying attention to capital adequacy from a financial point of view.; I think that we will grow as a sector that contributes to the economic development of the country by keeping capital and cash flow under control with sustainable solutions, with the effort to increase technical insurance income as well as financial income and risk-favorable pricing policy. The insurance sector has a greater share of gross domestic product; we need to increase insurance rates by 5 to 10 points. Even in the toughest year, we are a sector that is growing 15-16 percent. We need to increase our real growth rates to 7-8 percent.”

TURKEY HEALTH, HOUSING AND PERSONAL ACCIDENT IN 2021

”It is our common hope that the impact of the pandemic will decrease in the summer and the bans will be lifted and travel will begin" said, who believes that the sector will continue to grow in real terms in 2021. "In addition to health insurance, we will spend more time in our homes and the increase in interest in housing insurance will continue as a result of the earthquakes we have experienced. I think that the demand for compensation-based healthcare products will grow above average in 2021, again with Tele medicine content products in the individual area and expanded personal accident content products with extensive assistance services. I expect an increase in demand for both liability and group accident insurance with an increased level of awareness of employers. Due to the serious increase in vehicle prices and the pandemic, we will see more of the impact of the orientation towards individual transport on Turkish insurances in 2021.”

RETURN TO FAST DAYS IN INDUSTRY 2022 FINDS FIRST QUARTER

"In addition to health insurance, we will spend more time in our homes and the increase in interest in Turkish housing insurance will continue as a result of the Istanbul earthquakes we have experienced. We assume that the demand for compensation-based healthcare products will grow above average in 2021, again with Tele medicine content products in the individual area and expanded personal accident content products with extensive assistance services. I expect an increase in demand for both liability and group accident insurance with an increased level of awareness of employers. Due to the serious increase in vehicle prices and the pandemic, we will see more of the impact of the orientation towards individual transport on insurances in Turkey 2021.”