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State owned insurance companies unite under the umbrella of the TWF

December 13th 2019
Within the framework of the New Economy Programme, reforms were planned by the Ministry of Treasury and Finance in the insurance and private pension sector to expand the savings base of the Turkish economy and the non-banking financial sector. Within the scope of these reforms, the Insurance and Private Pension Regulation and Supervision Agency and Türk Reasurans A.Ş. were established.

The TWF is carrying out the project to bring insurance companies under the control of public banks under the umbrella of TWF in order to implement these reforms.

 Ranking 19th in the world in terms of gross domestic product, Turkey ranked 39th in premium production. The average annual insurance premium production per capita in the world in 2018 was USD 682, while in developed markets it stood at USD 3,737, but in Turkey was just USD 127. At the annual rate of direct premium production per capita, Turkey ranked 65th out of the top 88 countries as of 2018. In total premium production, the share of the life group in Turkey has stood at an average of 13% over the years, compared to 54% worldwide. In the light of these figures, it is clearer that Turkey needs to take steps in structuring the insurance sector. 

It is expected that the insurance and private pension companies, which are under the control of public banks, continuing their activities under a single roof will contribute to the establishment of the scale economy and the volume of the non-banking financial sector will approach the world average. In this vein, efforts are aimed at making the insurance and private pension sector a player among global competitors by enlarging the scale, decreasing costs by increasing the operational efficiency and using all distribution channels, especially the banks, more effectively, as well as offering a wider product range. 

The TWF believes that Turkey’s insurance sector will have an independent and dynamic structure and that its global competitive clout will increase with the right structural steps. We consider this project, which we attach tremendous importance to, in line with our mission of providing capital to Turkey's strategic investments and supporting the improvement and deepening in the financial markets as set out in our road map.  

Within the scope of the project, the Turkey Development and Investment Bank A.Ş., KPMG Independent Audit and Independent Accountant Financial Consultancy A.Ş. and Esin Attorney Partnership provide consultancy have provided services to the public. We will continue to share the developments regarding the project, which we plan to complete in the first quarter of 2020, with the public.

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