The majority of insurance companies in the Turkish market are "followers" in digital transformation, and the number of companies that have been able to implement digitalisation throughout the entire value chain is quite limited, according to the findings of a study.
When compared to developed insurance markets, the Turkish insurance sector as a whole falls in the “follower" category, rather than the "innovator" class reported Insurance Gazette, citing the study.
The research report, titled "Determining the Level of Digital Adaptation of the Insurance Sector", analysed statements on digitalisation made by senior executives of multinational insurance companies operating in Turkiye during the 2016–2023 period. The comments gathered were from publicly available statements from the general managers, board members, and deputy general managers of several insurance companies that indicated the sector's perception of digital transformation and the extent of implementation.
The research, led by Professor Erdem Kirkbesoglu, a faculty member at Baskent University's Department of Insurance and a member of GESID Ankara (Young Insurance Professionals Association), and prepared with contributions from Associate Professor Esma Erguner and Research Assistant Said Sami Sonmez, was published in the Journal of Risk Research.
According to the study:
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Digital applications in insurance companies were primarily focused on sales and marketing processes.
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Digital integration remained limited in core operational areas such as underwriting, pricing, claims management, and product development.
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Digital transformation was not yet at the centre of the strategy.
Despite the “follower” tag for the sector as a whole, a few insurers stood out in the Turkish market as digitally innovative companies. They included Aksigorta, Quick Sigorta, and AXA Sigorta.
The study categorised insurance companies into four classes:
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Inactive elements – Digital discourse exists, but operational transformation is weak.
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Followers – Digital applications are limited to the customer interface.
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Operators – There is integration in some operational processes.
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Innovators – Companies that have placed digital technologies at the heart of both their services and operations.
Perception of technology risk
The study also points out that technology risk is not yet given the same weight as financial risk in the insurance sector. While the traditional approach focused on regulation and capital adequacy prevails, issues such as data quality, algorithmic pricing, cyber risk, and digital operational vulnerability are not considered sufficiently central to strategic risk management.
The study highlights the need to strengthen the digital capacity of the Turkish insurance sector. Digital transformation in insurers needs to move beyond sales channels and become central to risk management and the value chain, the report said.