Participation insurance (akin to takaful), which grew by 93.7% in the first half of the year, increased its market share in Turkiye to 5.5% with a premium volume of TRY21.25bn ($633.6m), according to data compiled by the Insurance Association of Turkiye (TSB).
While 96% or TRY20.41bn of the participation insurance premium income was generated by non-life insurance lines, the life insurance branch contributed 4% or TRY843m, reported SigortaMedya.
The leader in participation insurance was the auto insurance branch, which accounted for 47.3% or TRY9.6bn of the segment’s total premiums.
Mr Ismail Aydemir, a senior executive at Katilim Emeklilik ve Hayat, says that the increases in 1H2024 in the motor, accident, and health branches in participation insurance were much higher than for the same three branches in conventional insurance in the country.
He said, “We should also state that the high inflation in our country in recent years directly affects both auto and health branches. We think that product demand on the risk and protection side will continue to increase in the coming period with the increase in awareness of financial products and services. When we look at the growth on the life insurance side, we see that this branch remains low in participation insurance. We anticipate that this branch will also support growth in the coming period, especially in parallel with the decrease in inflation and the increase in credit in participation banks.”
Mr Aydemir says that participation insurance demand is concentrated in the auto branch due to the insufficient number of companies providing participation insurance services.