The Turkish insurance market

Crédit photo: US Gov / CIA World Factbook

Insurance market features

Regulatory authority: General Directorate of Insurance -
Under-secretariat of Treasury
Premiums (2003): 3 544 millions USD
Insurance density (2003): 50.13 USD
Penetration rate (2003): 0.77%

2003 market structure

Actors	Number
Non life companies	35
Life companies	24
Reinsurance companies	3
Private pension funds	11
Number of insurance agencies	17 576
Number of bank guichets*	13 271

* Banks acting as insurance agents

Identity

Area: 780 580 Km²
Population (2004):
70 700 000 inhabitants
GDP (2003) :
458.5 billion USD
GDP per capita (2003):
6 500 USD
GDP growth rate (2003): 5.8%
Inflation rate (2003): 25.3%
Main economic sectors: textile industry, household appliances, motor industry, agriculture (tobacco, cotton, sugar, cattle), food industry, tourism

Major cities

(in number of inhabitants)

Istambul: 10 500 000
Ankara (capital): 3 700 000
Izmir: 3 200 000
Bursa: 2 000 000

Life and non life premiums' evolution: 1999-2003

in billion TRL

Premiums	1999	2000	2001	2002	2003
Non life	174 869	326 197	461 349	671 440	1 029 920
Life	743 783	1 367 415	1 961 609	2 825 944	3 944 278
Total	918 652	1 693 612	2 422 958	3 497 384	4 974 198

Non life premiums split by class of business and by company in 2003

in millions USD

	Fire	Marine	Casualty	Engg.	Agric. risks	Health	Non life total	Life	Grand total
AXA OYAK	55.13	13.26	226.83	11.04	0.05	0.00	306.31	0.00	306.31
ANADOLU ANONIM TÜRK	89.16	23.15	176.25	15.52	0.03	0.00	304.11	0.00	304.11
AKSIGORTA	69.12	13.47	150.50	10.30	0.35	8.41	252.15	3.40	255.55
YAPI KREDI	33.74	5.57	85.69	12.28	0.00	80.40	217.68	0.00	217.68
KOC ALLIANZ	69.56	15.16	112.83	16.46	1.17	0.12	215.30	0.00	215.30
GÜNES	54.19	10.53	105.60	25.41	0.88	3.68	200.29	1.32	201.61
ISVICRE	27.09	10.97	124.03	3.83	1.36	0.00	167.28	0.00	167.28
BASAK	35.76	9.52	90.02	10.53	6.90	7.88	160.61	3.34	163.95
RAY	15.96	4.27	77.60	5.92	0.00	0.00	103.75	0.00	103.75
GARANTI	26.76	8.29	35.22	7.79	0.00	6.50	84.56	0.00	84.56
T. GENEL	18.01	4.26	48.01	6.31	0.00	3.17	79.76	0.00	79.76
COMMERCIAL UNION	17.85	3.54	35.80	3.60	0.00	0.00	60.79	0.00	60.79
FINANS	8.81	1.64	40.62	2.05	0.00	0.00	53.12	0.00	53.12
GÜVEN	7.02	1.58	34.32	1.24	3.43	1.04	48.63	0.00	48.63
SEKER	7.01	1.01	28.95	2.57	0.29	0.06	39.89	0.48	40.37
ANKARA ANONIM TÜRK	4.19	0.78	33.01	0.91	0.00	0.00	38.89	0.00	38.89
GENERALI	10.59	1.42	16.81	3.47	0.00	0.06	32.35	0.01	32.36
ISIK	7.81	1.56	18.15	1.15	0.00	0.35	29.02	0.00	29.02
BATI	5.09	0.83	19.01	0.76	0.00	1.48	27.17	0.06	27.23
TEB	8.26	3.06	12.62	2.12	0.00	0.00	26.06	0.00	26.06
AIG	3.59	2.60	16.92	2.72	0.00	0.00	25.83	0.00	25.83
IHLAS	1.98	0.30	18.48	0.28	0.00	0.38	21.42	0.00	21.42
BIRLIK	5.10	0.26	14.59	0.70	0.00	0.25	20.90	0.00	20.90
HÜR	0.67	0.12	10.94	0.03	0.00	0.00	11.76	0.00	11.76
T. NIPPON	0.67	0.13	7.57	0.19	0.00	0.20	8.76	0.00	8.76
KAPITAL	-0.20	0.02	5.91	-0.15	0.00	0.00	5.58	0.00	5.58
TICARET	1.11	0.07	1.85	0.05	0.00	0.00	3.08	0.00	3.08
TOPRAK	0.12	0.03	1.23	0.17	0.00	0.00	1.55	0.00	1.55
SANKO	0.53	0.64	0.19	-0.08	0.00	0.00	1.28	0.00	1.28
RUMELI	0.40	0.05	0.32	0.09	0.00	0.00	0.86	0.00	0.86
DEMIR	-0.07	0.12	0.79	-0.05	0.00	0.00	0.79	0.00	0.79
EGS	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MAGDEBURGER	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
G.I.C. DÜNYA	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MERKEZ	0.00	0.00	0.00	0.00	0.00	0.00	0.00	-0.16	-0.16
Total	585.01	138.21	1 550.66	147.21	14.46	113.98	2 549.53	8.45	2 557.98

Evolution of the loss ratio split by class of business

	2000	2001	2002	2003
Fire	39.60%	65.97%	42.16%	38.30%
Marine	56.62%	66.81%	51.93%	47.46%
Casualty	66.95%	71.13%	68.14%	77.92%
Engineering	69.05%	206.60%	66.32%	60.38%
Agricultural risks	36.00%	50.03%	60.09%	113.10%
Health	76.04%	76.66%	74.75%	80.98%

Life premiums split by class of business and by company in 2003

in millions USD

	Casualty	Health	Non life total	Life	Grand total
ANADOLU H. EMEKLILIK	0.00	57.98	57.98	241.19	299.17
KOC ALLIANZ H. EMEKLILIK	2.08	93.15	95.23	53.20	148.43
COMMERCIAL UNION H.E.	0.00	1.70	1.70	103.54	105.24
YAPI KREDI EMEKLILIK	0.02	0.00	0.02	85.42	85.44
AXA OYAK HAYAT	4.36	31.52	35.88	35.84	71.72
BASAK EMEKLILIK	0.29	19.65	19.94	27.86	47.80
VAKIF EMEKLILIK	0.18	0.73	0.91	40.53	41.44
AMERICAN LIFE HAYAT	2.83	3.88	6.71	24.85	31.56
ISVICRE HAYAT	0.23	15.39	15.62	10.86	26.48
AK EMEKLILIK	0.55	-0.01	0.54	22.35	22.89
BAYINDIR HAYAT	0.43	14.53	14.96	7.12	22.08
GARANTI EMEKLILIK	0.00	0.00	0.00	19.90	19.90
DEMIR HAYAT	0.12	12.42	12.54	5.19	17.73
GENEL YASAM	0.00	0.04	0.04	17.05	17.09
ANKARA EMEKLILIK	0.00	0.00	0.00	10.27	10.27
DOGAN EMEKLILIK	0.02	0.02	0.04	9.70	9.74
BIRLIK HAYAT	0.00	0.00	0.00	3.80	3.80
GÜVEN HAYAT	0.00	0.00	0.06	2.27	2.33
RUMELI HAYAT	0.01	0.05	0.06	1.14	1.20
EMEK HAYAT	0.00	0.00	0.00	0.95	0.95
TOPRAK (GLOBAL) HAYAT	0.00	0.00	0.00	0.58	0.58
SEKER HAYAT	0.00	0.00	0.00	0.00	0.00
IHLAS HAYAT	0.00	0.00	0.00	0.00	0.00
OYAK EMEKLILIK	0.00	0.00	0.00	0.00	0.00
Total	11.12	251.05	262.23	723.61	985.84

Premiums split by class of business

Exchange rate USD/TRL as at 31/12	1999	2000	2001	2002	2003
Exchange rate USD/TRL as at 31/12	542 147.82	670 894.14	1 440 458.48	1 657 289.97	1 402 722.09

Survey prepared with the kind assistance of Best Re's Istanbul Regional Office with special thanks to Mr. Hafidh Hachani.

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Tue, 14/05/2013 - 11:02