TURKEY: Demand for life insurance products is increasing

30 May 2014 —
Once the financial crisis ended, the demand for life insurance products increased in 2010, compared to 2009, showed Jetse Frederik de VRIES, CEO, ING Emeklilik, during IIMC 2011 Conference, that took place in Istanbul, on the 28th and on the 29th of March, 2011.

At the same time, compared to 2001, the gross written premiums on life insurance segment had an exponential growth in Turkey, from USD 375 million in 2001 to USD 1,447 million in 2010.

In terms of distribution channels for life insurance policies, under the circumstances of extended banking networks, bancassurance holds 70% of total sales, followed by direct sales, with 11% - this form of commercializing being supported by sales teams specialized on corporate clients, by call centers and by online marketing.

Around 18% of the sales of life insurance companies in Turkey have been accomplished through their own networks of agents, "based on creating a close relationship with the client", said Jetse Frederik de VRIES.

Therefore, the degree of penetration of insurance brokers in the total life insurance underwritings is extremely low, 0.8%. "In Turkey, there are about 70 independent brokerage companies currently active, but they are mostly oriented towards industrial insurance", added the ING representative.

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TURKEY: Demand for life insurance products is increasing