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exist few years back are now major players in the Turkish motor insurance market. According
to the Turkish Insurance Association, motor insurance premiums rose by nearly 33% from July
1, 2016, to June 30, 2018 – a rise largely attributed to Takaful (Newton, 2019).
Currently, Turkey accounts for four full-fledged insurance companies and eight windows
providing Takaful coverage for a large section of the population. Experts are expecting that the
Islamic insurance (Takaful) to reach a 10% share of the Turkish Insurance Market by 2023.
There is already confusion over the validity of different Takaful contracts, and it is likely that a
Turkish option will only further cloud the field. However, Turkey is betting that its solutions,
namely growing and empowering a middle class through strong moves with religious backing,
could be the key to set it apart from the competitors. By that time, Turkey Takaful practices will
likely be considered as best practices. (Atlas Magazine, 2017).
Recent data released by the Insurance Association of Turkey (IAT) (2018) reveals that motor
insurance premiums increased significantly by 33%over two years since the mid of 2016
and present the growth and size of non-life and life insurance in Turkey.
FIGURE 21: T HE N ON-LIFE I NSURANCE OF TURKEY
Source: IAT
Both figures show that there is uptrend growth in both cases. The non-life insurance was only
around TRY 22.5 billion in the year 2014, and it was more than TRY 47 billion in year 2018. In
the case of life insurance, it was TRY 3.25 billion in year 2014, and it was TRY 6.89 billion in year
2018. It means that both insurance sectors were doubled in year 2018 compared to year 2014.
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35
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2014 2015 2016 2017 2018
TYR Billions