4/10/2013

Investment inflow to Turkish insurance sector to increase – E&Y report

Today’s Zaman - According to the “Global Insurance Outlook 2013” report recently released by Ernst & Young, Asian and European investors will focus on Turkey's insurance sector in 2013, particularly as a result of government incentives offered regarding private pension plans (BES).


The report said, “Turkey's young population and increasing qualified manpower potential combined with the new regulations implemented regarding the insurance sector will direct the interest of Asian and European investors to Turkey as consumption has slowed down in those countries.” Commenting on Turkey's insurance sector, the report also underlined that this sector will follow the success of other sectors in the country and become a leader and a determinant in its region.


In the first quarter of 2013, Europe's biggest insurer, Allianz, agreed to buy insurance business Yapi Kredi Sigorta from Turkish lender Yapi Kredi Bank to secure a bigger slice of a rapidly expanding market. The net purchase price for Yapi Kredi's 93.9 percent stake in Yapi Kredi Sigorta was TRY 1.60 billion (USD 883 million).


Ernst & Young Turkey Audit Partner Seda Hacioglu said that before the implementation of the new regulations, only those who were employed were able take advantage of BES, but as of January 1, anyone over the age of 18 is able to obtain a BES while benefiting from the government incentive of a 25 percent contribution to their monthly plans. “With the government incentive, the insurance sector has gained momentum and strengthened the marketing strategies of the insurance companies. In the first two months of 2013, the number of registered BES holders increased by over 200,000, which was four-and-a-half times greater than in the same period of the previous year. As of 2013, BES participants numbered 3.1 million with a total value of TRY 19.7 billion,” she stated.

Turkey; financial services sector; turkey insurance market; turkey insurance sector; turkey private pension system; Allianz turkey