A portion of nearly 60% of the total premium gained in the sector in 2006 belongs to foreign or foreign partnership companies. In concerns with the generation of premiums, seven of the first greatest ten companies are foreign or foreign partnership companies. This increase observed in the foreign share of the insurance sector is a natural result of globalization.
The boom experienced in the insurance sector in 2006 with regard to foreign capital investments are continuing in 2007. Experts are delivering the opinion that an increase in the foreign share within the Insurance sector will bring also quality service.
It is supposed that the insurance sector in Turkey being wide behind the EU countries with regard to per capita insurance premium generation will definitely continue its rapid growth trend.
The partnership between Garanti Bankasý and Eureko B.V. being one of Europe’s leading insurance groups announced in the month of March, has been approved by the R.T. Prime Ministry Undersecretariate of Treasury lately. As to the sales agreement executed on Thursday June 21, 2007 Eureko purchased 80% of the Garanti Sigorta A.Þ. shares at a price of 365 Million Euro. Moreover, the company purchased 15% of the Garanti Emeklilik ve Hayat A.Þ. shares for 100 Million Euro.
The rise of foreign capital entries into the insurance sector will not only strengthen the financial structure of the sector, but also ensure that only price focused competition is experienced within quality and service dimensions. It is expected that the organization of the foreign investments aiming at sharing the cake on the market will grow the cake and change it through new advertisement and awareness-raising campaigns. It is supposed that the rapid growth trend in the insurance sector in Turkey being wide behind the EU countries with regard to per capita insurance premium generation will definitely continue.