Abdurrahman Köse, Chairman of the Stronger Agents Platform, offered significant insights into the growth of the insurance sector and increasing insurance penetration. Köse stated that focusing solely on compulsory motor insurance and comprehensive motor insurance is insufficient for developing insurance awareness in Turkey and ensuring the sector achieves sustainable growth, and emphasised that the insurance sector must take a more active role in different product and coverage areas.
Noting that the insurance sector has for many years been shaped largely around the provision of compulsory motor insurance and comprehensive motor insurance, Köse emphasised that these two products are of vital importance to the sector. However, pointing out that product diversity must be increased for the sector to grow in a meaningful way, Köse stated, “Compulsory Motor Insurance and Comprehensive Motor Insurance are, of course, among the core products of our sector. These products provide cover for millions of vehicle owners and play a significant role in fostering insurance awareness. However, if we wish to increase insurance penetration, we cannot proceed solely through these two products,” he said.
Highlighting that the insurance sector in Turkey still has significant growth potential, Köse said that a stronger development strategy needs to be formulated in areas such as health insurance, supplementary health insurance, home insurance, business insurance, cyber risk insurance, engineering insurance, agricultural insurance and personal pension products.
Köse noted that the insurance sector’s focus on certain products over time had created a “comfort zone”, and made the following observation:
“A structure focused solely on motor and comprehensive insurance makes it difficult for the sector to branch out into new areas. Over time, this situation leads to a structure that confines the insurance industry to its own comfort zone. Yet today, new risk areas are emerging, such as changing living conditions, digitalisation, climate change, health risks and cyber threats. The insurance sector needs to develop more products in these areas and raise public awareness.”
Emphasising that insurance agents will play a critical role in this transformation, Köse stated that agents, who are in direct contact with customers on the ground, should be positioned not merely as policy sellers but as professionals who provide risk consultancy.
Noting that insurance penetration in Turkey remains at low levels compared to developed countries, Köse stated that, for the sector to achieve its growth targets, the public must be encouraged to move away from viewing insurance solely in relation to their vehicles.
Köse said, “When people hear the word ‘insurance’, they shouldn’t just think of motor insurance or comprehensive cover. There are many products available that allow people to protect their health, homes, workplaces, futures and digital assets. If we as an industry can raise awareness of this, not only will our citizens gain stronger protection, but the insurance sector will also achieve much healthier and more sustainable growth.”
Industry representatives agree that expanding product diversity, improving financial literacy and raising public awareness of different insurance solutions will be of great importance in the coming period in order to increase insurance penetration.
