Market Trends of Turkey Health and Medical Insurance Industry
Rise In Private Health Insurance
Top-up insurance is the fastest-growing portion of the private medical insurance market in Turkey. According to the Insurance Association of Turkey, during the pandemic, health premiums increased by 22.9% in the country. The advent of complementary health insurance in health and Medical Insurance is raising the demand for private health insurance.
Private insurance companies in Turkey are providing two main types of coverage, namely in-patient coverage and out-patient coverage, and have additional premium payment for glasses (glass/frame/lens), with the coverage of dental expenses as the third type of insurance. Supplementary health insurance, where premiums are more economical, is becoming increasingly widespread with varied product alternatives in the market providing consumers access to more widely-assured products. The potential of these health and medical insurance products to reach larger audiences is a promising future of the market with increasing competition in the insurance sector raising investments in the health sector.
Fastest-growing Channel of Purchase of Private Health Insurance in Turkey is Through Insurance Agencies
Insurance agencies or third-party insurance payers make up more than 40% of the health or sickness insurance distribution in Turkey. They have a huge weight in terms of premium products. On the other hand, the share of brokers and banks has been picking up as a result of the universal health insurance coverage initiative. Insurance companies have greater opportunities to tap the bank's huge customer base. Turkey Bank's financial services experience, technological underwork, prevalent branch network, and bancassurance's distribution channel of cost, and sharing of sources, are acting as the factors necessitating bancassurance in bank and insurance companies.
One of the most important changes in the Turkish insurance sector over the past few years was bancassurance. Banking institutions and insurance companies have found bancassurance to be quite attractive and, often profitable, to their existing activities.
