Zaman – Presenting a huge market for global insurance companies with only a limited portion of its populace of about 75 million having coverage, Turkey will see more foreign investors in the insurance arm of the financial services sector in the near future, according to the President of the Investment Support and Promotion Agency of Turkey (ISPAT).
“Investment opportunities in Turkey’s finance, banking and insurance industries are being pursued by potential investors from all over the world.”, Ilker Ayci said in an interview. Although Europe is still the largest combined sender of foreign direct investment (FDI) to Turkey, there is a growing interest towards our country from North American and Far Eastern countries, notably from Japan, Ayci said.
More than half of Turkey’s insurance market is dominated by foreign investors. According to 2011 data, 28 of the 35 non-life insurers in Turkey have a foreign partner while 23 of the 28 life and pensioning firms are partly owned by foreigners.
The sale of Yapi Kredi Sigorta, the insurance branch of the Yapi Kredi bank owned Turkish group Koc Holding and Italian bank UniCredit, is expected to be latest international transaction in Turkey’s insurance market. Potential buyers include Dai-ichi Life of Japan, Swiss Zurich Insurance and Allianz of Germany.
A fast growing economy with favorable demographics, Turkey is one of the most promising markets to invest in for many global insurers facing stiff competition and low prospects of growth in their home countries.