In some of my earlier posts, I mentioned that the Turkish Insurance Market has not yet been distinguished as Market Makers and Market Followers with clear marks, and as a result that all players in the market still had the opportunity and hope to become the market leader.
However, when we look at 2011 results, we see that this is not entirely true anymore, and that the top two (Axa and Anadolu) have started to make their strength visible as market makers.
The total market share of the top two players reached 27.08% in 2011 from 24.60% in 2010. When we look into the details of the business lines, it becomes clearer.
The shares of these two companies especially in motor own damage and motor third party liability, which compose 44.7% of the total market, seems like it is beyond competitiveness.
The comparison of the total market shares of the top two players of 2010 and 2011 are as follows:
2010 2011
MTPL %30.04 %37.70
Motor Own Damage %30 %33.50
Health %14.02 %13.04
Property %25.71 %27.17
Casualty %18.57 %17.83
Marine %18.92 %20.24
The absolute growth of each of these two companies in 2011 (top player’s GWP increase is TL 479.060.475, second player’s GWP increase is TL 505.632.793) is more than the total production of each of the companies in the second top 10.
The Insurance Market has entered a brand new structure and new competitive conditions in 2012.
It looks almost definitive from now on that it is not going to be sufficient to grow organically but it will be a requirement for mergers and acquisitions to catch the top two and all the companies will follow the two leaders more and more in terms of pricing.