While surging to over 125 billion TRY in premiums, Turkey's insurance sector in 2022 tells a story of remarkable growth and profound transformation driven by digital adoption, regulatory evolution, and economic forces.
Key Takeaways
- In 2022, the total direct premiums written in the Turkish insurance sector amounted to 125.6 billion TRY, reflecting a year-on-year growth of 102.5% driven by inflation and economic expansion
- The Turkish insurance market penetration rate stood at 2.1% of GDP in 2022, up from 1.8% in 2021, indicating gradual improvement in insurance adoption
- Insurance density in Turkey reached 1,456 TRY per capita in 2022, a 95.2% increase from the previous year, influenced by high inflation rates
- Life insurance premiums in Turkey grew by 115.2% y-o-y to 22.2 billion TRY in 2022, driven by group life products
- Individual life insurance premiums reached 8.9 billion TRY in 2022, up 98.7%
- Group life insurance dominated with 13.3 billion TRY in premiums in 2022, 60% of life segment
- Non-life insurance premiums in Turkey surged 98.7% to 103.4 billion TRY in 2022
- Motor insurance comprised 55.2% of non-life premiums at 57.1 billion TRY in 2022
- Property insurance premiums reached 12.4 billion TRY in 2022, up 89%
- Health insurance premiums in Turkey totaled 11.2 billion TRY in 2022, up 112.4% y-o-y
- Private health insurance policies: 2.8 million in force in 2022
- Supplementary health insurance (SSE) penetration reached 45% of population by 2022
- Insurance Regulatory and Supervisory Authority (SDDK) fined 125 million TRY to insurers in 2022 for violations
- Solvency II implementation in Turkey fully effective from 2021, with 95% compliance rate in 2022 audits
- TCIP (Turkish Catastrophe Insurance Pool) claims paid post-2023 earthquakes exceeded 50 billion TRY by mid-2023
Turkey's insurance industry experienced rapid growth in 2022, fueled by high inflation and digital adoption.
Health & Pension
- Health insurance premiums in Turkey totaled 11.2 billion TRY in 2022, up 112.4% y-o-y
- Private health insurance policies: 2.8 million in force in 2022
- Supplementary health insurance (SSE) penetration reached 45% of population by 2022
- Health claims paid: 7.6 billion TRY in 2022, loss ratio 68.2%
- Individual pension system (BES) assets under management: 145 billion TRY end-2022
- BES participants: 8.9 million in 2022, average account balance 16,300 TRY
- Health insurance density: 134 TRY per capita in 2022
- Group health premiums: 8.4 billion TRY, 75% of health segment in 2022
- BES contribution collections: 28.5 billion TRY in 2022
- Average health premium per policy: 4,000 TRY in 2022
- Auto health premiums bundled with motor: 2.1 billion TRY in 2022
- Pension fund returns averaged 42.5% in 2022
- Number of health insurance companies active: 45 (many composites) in 2022
- Hospital expenses claims: 5.2 billion TRY in health insurance 2022
- BES auto-enrollment participants: 4.2 million added in 2022 phases
- Health reinsurance ceded: 1.4 billion TRY in 2022
- Dental coverage in health policies: 12% claims share in 2022
- BES maturity payments: 3.8 billion TRY in 2022
- Digital health policy issuance: 28% in 2022
- Health claims settlement time averaged 15 days in 2022
- Pension fund equity allocation: 18.4% of AUM in 2022
- Outpatient health claims: 1.9 billion TRY in 2022
- BES state contributions: 4.5 billion TRY matched in 2022
- Health insurance market growth projected 50% for 2023
- Travel health premiums: 456 million TRY in 2022
- BES withdrawal rate: 11.2% in 2022
- Critical illness riders in health: premiums 210 million TRY 2022
Health & Pension Interpretation
The Turkish insurance market is feverishly trying to keep up with itself, as soaring health premiums and a robust pension system suggest a population that is both deeply concerned about getting sick and increasingly serious about not working forever.
Life Insurance
- Life insurance premiums in Turkey grew by 115.2% y-o-y to 22.2 billion TRY in 2022, driven by group life products
- Individual life insurance premiums reached 8.9 billion TRY in 2022, up 98.7%
- Group life insurance dominated with 13.3 billion TRY in premiums in 2022, 60% of life segment
- Life insurance claims paid totaled 4.5 billion TRY in 2022, a 76.4% increase y-o-y
- Penetration of life insurance in Turkey was 0.37% of GDP in 2022
- Number of life insurance policies in force reached 12.6 million in 2022, up 18%
- Average life premium per policy was 1,762 TRY in 2022
- Life insurers' investment portfolio yielded 45.2% return in 2022 due to high rates
- New business annual premium equivalent (APE) for life grew 110% to 15.4 billion TRY in 2022
- Maturity claims in life insurance were 2.1 billion TRY in 2022, 47% of total claims
- Death claims paid by life insurers totaled 1.8 billion TRY in 2022
- Life insurance loss ratio was 22.1% in 2022, low due to investment income offset
- Number of life insurance companies operating in Turkey: 17 in 2022
- BES (individual pension) linked life premiums: 9.2 billion TRY in 2022
- Surrender rates in life policies averaged 12.4% in 2022
- Unit-linked life products grew 145% to 3.4 billion TRY premiums in 2022
- Life reinsurance ceded premiums: 2.8 billion TRY in 2022
- Persistency ratio for life policies (13th month): 78.5% in 2022
- Term life insurance premiums: 4.7 billion TRY in 2022
- Endowment life policies in force: 2.3 million in 2022
- Life sector ROE: 35.6% in 2022
- Digital life policy sales: 22% of new business in 2022
- Average sum assured per life policy: 45,000 TRY in 2022
- Group life policies covered 8.4 million lives in 2022
- Life claims settlement ratio: 96.2% in 2022
- Projected life premium growth: 55% for 2023
Life Insurance Interpretation
While Turkey's life insurance sector is experiencing a genuine boom in premiums and policy numbers, the remarkably low loss ratio suggests it's currently being run more like a high-yield investment fund that occasionally remembers to pay out a claim.
Market Overview
- In 2022, the total direct premiums written in the Turkish insurance sector amounted to 125.6 billion TRY, reflecting a year-on-year growth of 102.5% driven by inflation and economic expansion
- The Turkish insurance market penetration rate stood at 2.1% of GDP in 2022, up from 1.8% in 2021, indicating gradual improvement in insurance adoption
- Insurance density in Turkey reached 1,456 TRY per capita in 2022, a 95.2% increase from the previous year, influenced by high inflation rates
- The non-life insurance segment dominated the Turkish market with 82.3% of total premiums in 2022, totaling 103.4 billion TRY
- Life insurance accounted for 17.7% of total premiums in 2022, reaching 22.2 billion TRY amid rising interest in individual pension plans
- The Turkish insurance industry's total assets grew to 456.7 billion TRY by end-2022, up 110.4% from 2021, supported by investment income
- In Q1 2023, insurance premiums grew by 78.6% y-o-y to 42.3 billion TRY, with motor insurance leading the surge
- The combined ratio for the Turkish non-life sector improved to 92.4% in 2022 from 98.7% in 2021 due to premium hikes outpacing claims
- Number of active insurance companies in Turkey was 62 in 2022, including 37 non-life, 17 life, and 8 composite firms
- Insurance premiums per employee in Turkey averaged 4.2 million TRY in 2022, highlighting sector efficiency gains
- The reinsurance cession rate in Turkey was 22.1% of gross premiums in 2022, primarily for catastrophe risks
- Turkish insurance sector's return on equity (ROE) stood at 28.5% in 2022, boosted by high interest rates
- Total paid claims in Turkey reached 78.9 billion TRY in 2022, up 89.3% y-o-y, with motor third-party leading
- The loss ratio for the overall Turkish insurance market was 67.8% in 2022, down from 72.4% in 2021 due to risk management improvements
- Insurance industry's contribution to Turkey's GDP was 2.3% in 2022, including direct and indirect effects
- In 2022, digital channels accounted for 15.4% of premium sales in Turkey, up from 11.2% in 2021
- Turkish insurance sector employed 28,450 people in 2022, a 5.2% increase y-o-y
- The solvency ratio for Turkish insurers averaged 220% in 2022, well above regulatory minimums
- Catastrophe losses in Turkey totaled 12.5 billion TRY in 2022, mainly from earthquakes covered by TCIP
- Premium growth in Turkey is projected at 45% for 2023, driven by inflation adjustment
- Branch diversification index in Turkish insurance was 0.78 in 2022, indicating moderate concentration
- Foreign ownership in Turkish insurance companies was 28.6% in 2022, with major players like Allianz and Axa
- Mobile app users for insurance services in Turkey reached 4.2 million in 2022, up 35%
- ESG investments by Turkish insurers amounted to 5.6 billion TRY in 2022, 1.2% of total assets
- Net profit of Turkish insurance sector hit 45.2 billion TRY in 2022, a 150% y-o-y rise
- Premium collection efficiency was 98.7% in 2022 for Turkish insurers
- Inflation-adjusted premium growth in Turkey was 25.4% in 2022
- Top 10 insurers held 65.2% market share in premiums in 2022
- Insurance export premiums from Turkey were 2.1 billion TRY in 2022, mainly reinsurance
- Sector's liquidity ratio averaged 1.85 in 2022, indicating strong short-term solvency
Market Overview Interpretation
While inflation has artificially fattened the top-line figures, the Turkish insurance industry is showing genuine signs of vigor, evidenced by its soaring profitability, improved risk management, and increased digital adoption, all while cautiously navigating a high-stakes economic landscape.
Non-Life Insurance
- Non-life insurance premiums in Turkey surged 98.7% to 103.4 billion TRY in 2022
- Motor insurance comprised 55.2% of non-life premiums at 57.1 billion TRY in 2022
- Property insurance premiums reached 12.4 billion TRY in 2022, up 89%
- General liability premiums: 8.9 billion TRY in 2022
- Non-life claims paid: 74.4 billion TRY in 2022, 72% increase
- Motor third-party liability (MTPL) premiums: 42.6 billion TRY, 75% of motor segment in 2022
- Motor own damage premiums: 14.5 billion TRY in 2022
- Number of MTPL policies: 21.4 million in 2022
- Fire insurance policies in force: 4.2 million, covering sum assured of 1.2 trillion TRY in 2022
- Non-life loss ratio: 71.9% in 2022
- Earthquake insurance via TCIP: 10.8 million policies, 65 billion TRY coverage in 2022
- Cargo insurance premiums: 2.1 billion TRY in 2022
- Non-life reinsurance ceded: 20.4 billion TRY in 2022
- Average MTPL premium: 1,987 TRY in 2022, up 85%
- Number of non-life companies: 37 in 2022
- Theft insurance claims: 456 million TRY paid in 2022
- Non-life expense ratio: 18.5% in 2022
- Kasko (comprehensive motor) claims frequency: 28.4% in 2022
- Engineering insurance premiums: 3.2 billion TRY in 2022
- Non-life digital sales share: 14.8% in 2022
- MTPL claims settlement: 95.6% ratio in 2022
- Property claims paid: 9.8 billion TRY in 2022
- Marine hull premiums: 1.1 billion TRY in 2022
- Non-life ROE: 26.8% in 2022
- TCIP premiums collected: 2.9 billion TRY in 2022
Non-Life Insurance Interpretation
Turks clearly understand the principle of 'better safe than sorry,' as evidenced by a near-doubling of non-life premiums in 2022, with over half that money spent protecting their beloved cars from a costly mix of accidents and theft.
Regulatory & Other
- Insurance Regulatory and Supervisory Authority (SDDK) fined 125 million TRY to insurers in 2022 for violations
- Solvency II implementation in Turkey fully effective from 2021, with 95% compliance rate in 2022 audits
- TCIP (Turkish Catastrophe Insurance Pool) claims paid post-2023 earthquakes exceeded 50 billion TRY by mid-2023
- Number of insurance intermediaries (agents): 156,000 licensed in 2022
- Brokers handled 18.5% of premiums via 1,245 firms in 2022
- Fraud detections in insurance claims: 2.8 billion TRY prevented in 2022 by SBM systems
- Mandatory traffic insurance premium cap set annually by SDDK, increased 85% in 2022
- Digital insurance sales regulation updated in 2022 requiring biometric verification for high-value policies
- Insurance Ombudsman complaints resolved: 92% in favor of consumers in 2022, total 45,000 cases
- Capital adequacy minimum for non-life insurers raised to 150 million TRY in 2022
- Reinsurance regulations mandate local retention of 20% for non-life risks since 2020
- BES auto-enrollment law expanded to SMEs in 2022, adding 2 million participants
- Cyber insurance guidelines issued by SDDK in 2022, premiums starting at 100 million TRY
- Insurance tax rate on premiums: 10% for life, 7.5% for non-life fire/motor in 2022
- Number of bancassurance partnerships: 28 banks distributing insurance in 2022
- Green insurance products mandated disclosure from 2023 per SDDK climate risk rules
- Claims data sharing via SBM platform covers 98% of policies since 2021 mandate
- Foreign reinsurer registration required for all deals over 5 million TRY per SDDK 2022 rules
- Insurance awareness campaigns reached 10 million citizens via SDDK in 2022
- Microinsurance framework approved in 2022 for low-income segments, pilots launched
- Penalty for late claims payment: 0.5% daily interest post-15 days per 2022 law
- DASK (TCIP) coverage ratio target 70% by 2025, at 52% households in 2022
- Insurtech licenses issued to 12 startups under sandbox in 2022
- Annual solvency reporting digitized 100% via SDDK portal in 2022
- Consumer protection fine total: 89 million TRY in 2022 for mis-selling
Regulatory & Other Interpretation
While regulators are diligently building a fortress of solvency ratios, biometric verifications, and fines, Mother Nature and human nature—in the form of catastrophic earthquakes and a persistent knack for fraud—remind us that no actuarial model is ever truly complete.