TURKEY: Newly created state insurer expected to quadruple insurance sector's share in the financial market

21 September 2020 — Daniela GHETU
State-owned Turkey Insurance and Turkey Life Pension (Turkiye Sigorta ve Turkiye Hayat Emeklilik) is expected to boost insurance coverage in Turkey, increasing the sector's share in the national financial market from the current 4.5%, to as much as 20%.

According Atilla BENLI, Chairman of Turkey Insurance, "the newly created company will pave the way for boosting the coverage capacity of the Turkish insurance industry," while its creation will prove to be "the most strategic and important capacity-increasing structural reform in the financial sector," - the Anadolu Agency reported. He also explained that the company "is set to assume a pioneering and market-making role in risky or unpenetrated areas where coverage has previously been unavailable."

Launched on September 7, Turkey Insurance brings six state-run insurance and pension companies under a single roof, currently employing a staff of around 2,600. The company is expected to increase its human resources to over between 5,000 to 6,000 employees by 2023.

The Turkey Wealth Fund (TWF) acquired, for a total consideration of TRY 6.54 billion, all shares of partially state-owned insurance companies - HALK Sigorta, GUNES Sigorta, ZIRAAT Sigorta, HALK Hayat ve Emeklilik, ZIRAAT Hayat ve Emeklilik and VAKIF Emeklilik ve Hayat - to consolidate them under a single roof, the TURKEY Insurance Joint Stock Co. The consolidation aiming to form the biggest insurance & pensions company in the country, was a project of the Treasury and Finance Ministry which was announced in December to raise the country's domestic savings rate and grow the non-banking financial services sector.

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