Reports by KPMG and Türkiye Sigorta Shed Light on Sector’s Green Future

The 2025 “Sigorta Sektörel Bakış” report from KPMG paints a vivid picture of a booming era in Türkiye’s insurance sector. In 2024, the industry’s gross premium production rocketed by 73 percent, pushing the total sector volume to a staggering 838.5 billion TL. Looking ahead, the sector is projected to surpass 1.2 trillion TL in size by 2025—a signal of both strength and ambition.KPMG+4Mondaq+4KPMG+4

Key Growth Highlights of 2024

• Life insurance premiums soared by 76 percent, while non-life premiums increased by 72 percent, reflecting balanced growth across the board.KPMG

• The sector’s net profit jumped 59.46 percent, reaching 31.762 billion TL—with life insurance accounting for 82 percent of total returns.Mondaq+1

• Among 74 active firms, 68 percent operate in non-life lines, 27 percent in life and pensions, and 5 percent in reinsurance.Mondaq+2KPMG+2

• Non-life branches accounted for 738.59 billion TL in premiums, showing real growth of 19.15 percent in sectors such as vehicle liability, health, and catastrophe coverage.assets.kpmg.com+4Mondaq+4KPMG+4

Active Asset Leaders

KPMG also ranked Türkiye’s top insurers by assets:

What’s Driving Growth?

Ali Tuğrul Uzun, KPMG Turkey’s Insurance Sector Leader, notes that the sector’s expanding volume of claims paid and investment assets bolsters financial stability. Despite these gains, the insurance market remains undersized relative to its potential, primarily due to limited disposable income and entrenched low penetration levels. Yet, surging active volumes and positive policy measures suggest a promising future—though much remains to be done.KPMG

Green Insurance and Emerging Risks

Looking beyond numbers, the “PENSURA 2025: Risklerin Portresi” report, produced with Istanbul University, spotlights evolving threats: cyberattacks, climate disasters, and economic turbulence now demand agile, next-gen risk solutions.

The report underscores green insurance—covering renewable energy assets, climate-based policies, eco-friendly compensation models, green building protection, and nature conservation—as pivotal in both profitability and social impact. This shift, part of a broader sustainable insurance trend, signals a new growth frontier.assets.kpmg.com

Empowering Long‑Term Savings: BES and OKS

The Bireysel Emeklilik Sistemi (BES) continues gaining traction, buoyed by Automatic Enrollment (OKS) mechanisms. By end‑2024:

• 9.53 million participants were enrolled

• Fund size surpassed 1 trillion TL
  
  By March 2025, fund assets had climbed to 1.147 trillion TL, with 11.99 million contracts active. This expansion helps channel household savings into financial markets—crucial for countries like Türkiye with traditionally low savings rates.KPMG+4Mondaq+4assets.kpmg.com+4

Challenges to Watch

While growth is encouraging, Türkiye’s insurance sector navigates complex headwinds:

• Geopolitical strains and economic instability

• Rising expectations from insurers to cover climate-related catastrophes and cyber exposures

• The pressing need for digitally skilled talent to fuel transformation and innovationassets.kpmg.comKPMG

  

A Strategic But Under‑Utilized Market

KPMG frames Türkiye’s insurance market as one with “100 percent growth potential”. Its youthful population, rising insurance awareness, and adaptability to technology equip it to be a compelling opportunity zone for both local and international investors. Unlocking this potential hinges on advancing digital transformation, expanding coverage, and cultivating new insurance paradigms like green products, cyber protection, and parametric solutions.assets.kpmg.comKPMG

Final Thoughts

Türkiye’s insurance sector is entering a transformative phase. Fueled by strong premium growth, record profits, and expanding savings vehicles like BES and OKS, the industry is modernizing rapidly. With the rise of green and technology-powered insurance models, the sector can evolve from a reactive risk pool into a proactive economic driver.

However, looming uncertainty means insurers must stay agile, enhance risk strategies, and deepen public trust. With the right direction, Türkiye could become a regional exemplar of resilient, future-ready insurance—balancing growth, sustainability, and societal value.