The Turkish insurance market is expected be larger than previously anticipated in 2020 due to product diversification and digitalization following COVID-19, according to GlobalData, a leading data and analytics company.

The company’s revised forecasts estimate total gross written premium (GWP) will be ₺68.96bn in 2020, compared to ₺66.07bn previously. However, the revised forecasts see slower increases up to 2020, while the pre-COVID-19 forecasts become larger.

The majority of private healthcare policies in Turkey were covering detection and treatment costs of patients suffering from COVID-19. Major health insurers in the country are still offering health insurance against the disease. This is expected to spur the uptake of private health insurance in the short-term. However, GlobalData expects the growth rate to drop off over the review period in its revised forecasts.

Deblina Mitra, Insurance Analyst at GlobalData, comments: “The onset of a pandemic directly impacted business operations, leading to severe supply chain disruptions. These directly impact the insurance segment, as the stalling of business operations led to an increase in the unemployment rate and a decline in individuals’ propensity to invest. Low disposable income is expected to directly impact demand for insurance products in the country.”

The spread of the virus is expected to accelerate digitalization in the industry to limit human contact. Online distribution of policies and services such as virtual GPs are expected to increase. 

Mitra adds: “The virus also spurred the demand for a number of traditional insurance products to cater for risks associated with the virus. Commercial and individual cyber policies, for example, have gained traction due to the rise in remote working.”