After the acquisition of Yapi Kredi Sigorta by Allianz, the total production of the top four players of the market has reached TL 8.604.417.014 with a total market share of 50.27% as of 31.12.2012.
As of 31.12.2012, the total market share of Health, Motor Own Damage and Motor Third Party Liability has reached 59.54% out of all non-life LoB’s.
The total premium production of these three LoB’s was TL 10.707.942.789, whereas the premium production of the top four in these three LoB’s was TL 5.896.692.974 (55%).
Being outside of these three LoB’s whose profitability problems still continue and which constitute almost 60% of the insurance market will mean to try to take share in the remaining 40% of the cake.
When you look at the new structuring in the market, it is becoming ever harder for the companies to survive, earn money or make business for the companies whose market share is 3% or below.
What needs to be done can be listed as:
1- Merging of medium and small sized companies with each other,
2- Joining the larger players,
3- Focusing on specific products or distribution channels in order to reach profitabilities comparable to their sizes,
4- Leave the Turkish insurance market before suffering larger losses.