The insurance industry is projected to increase total premiums by 35-40% in 2025, as inflation slows, according to data from the Insurance Association of Turkiye (TSB).
In 2024, the insurance market generated TRY838bn ($22bn) of premiums, a 72.5% increase over 2023.
The average inflation rate in Turkiye was around 58.5% in 2024 and projected at 24% for this year.
Technical profits in the insurance sector increased by 69% in 2024, reaching TRY103.6bn. Of this, TRY84bn was derived from non-life branches, and TRY19.6bn from the life and pension branches, according to a Finans Gundem report, quoting TSB board member Ms Neslihan Neciboglu.
Net profits increased by 57% year on year to TRY103.9bn in 2024.
2024 stands out as a year of strong growth and financial solidity for the insurance sector, said TSB president Mr Ugur Gulen. He said, "The insurance sector reinforced its financial resilience by continuing to strengthen its equity structure. In 2024, equity size increased by 74% to TRY265.3bn. In 2024, the total asset size of the insurance sector increased by 61% to TRY2.29tn.
“This growth strengthened the financial stability of insurance companies and created an important foundation for sustainable growth," said Mr Gulen. “One of the most pleasing developments is that the number of our policies is increasing in main branches such as motor, health and fire,” he said.
Mr Gulen also emphasised that the sector is taking steps to increase its capital adequacy, saying, "We are developing new financial instruments and investment strategies in order to manage our capital structure more efficiently."