There is huge potential for re/insurance growth in Turkey, according to Namik Gulsun, Executive Director, EMENA at facultative and wholesale broker, Faber Global, a trading division of Willis Group Holdings.
While much of Europe remains mired in economic crisis, Turkey is still enjoying steady growth. This presents an opportunity to both insurers and reinsurers looking to grow. However, the domestic insurance market in Turkey has been slow to react.
Writing in a recent blog post on WillisWire, Gulsun said: “Domestic insurers must take advantage of this growth by promoting the use of more specific insurance covers for the new assets it is creating. While they cruise slowly but surely towards increasing insurance penetration in the country, Turkish insurers must also adapt and become more responsive to new types of risks that they consider ‘unusual’ in terms of sophistication or size.”
The blog also explained that “much of Turkey’s growth is being driven by the government’s use of Project Financing, where the private sector provides the financing for construction projects, which will eventually be handed back to the government. This means that the scale and complexity of construction projects and assets in Turkey is increasing phenomenally.”
Gulsun commented: “This has left Turkey’s insurers playing a game of catch up. While the industry is astute at covering traditional risks, it has not yet become attuned to covering more specific complex risks that the country’s recent economic boom is creating. This is where reinsurers with global expertise can offer assistance and support in creating appropriate programs to cover more complicated risks.
“Faber Global recently brokered coverage for the construction of the Istanbul / Izmir motorway: one of the largest construction projects in the world. Our Global Construction Team was able to help the project’s insurers navigate complex risks and match them with appropriate reinsurance cover.”
Source: Willis’ Faber Global
Topics Reinsurance Construction
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