Insurance in Turkey and main problems of the sector

• Main Author: Alaattin Firat
• Format: Article
• Language: English
• Published: BİSKA Bilisim Company 2016-10-01
• Series: Communication in Mathematical Modeling and Applications
• Subjects: Insurance; insurance in Turkey; insurance sector; the problems of insurance sector; the features of the insurance sectors.
• Online Access: https://ntmsci.com/ajaxtool/GetArticleByPublishedArticleId?PublishedArticleId=7200

In this study, by handling private insurance sector in Turkey and the problems of the sector as a whole, the last stage that the insurance business in Turkey has reached has been evaluated. Basically, because of the fact that the most of the people had fatalistic understanding, religious leaders approached the concept of insurance negatively and adequate information hadn’t been gotten about insurance, the settlement of the idea of insurance in Turkey came true after 150 years later, at the end of 19. Century compared with Europe. As a result of changing conditions, Turkey is in 63rd in accordance with the insurance density on the world countries’ rank, and is in 39th rank in accordance with the primary production. In spite of this, when we examine the studies according to per person criteria, it is seen that the premium rate per person in Turkey is fortieth level among developed countries. The top reason of the fact that insurance business in Turkey hasn’t risen to the requested level is that there is still fatalistic society understanding; and also, the fact that insurance understanding hasn’t been settled, and hitching and late payment on damage payments of insurance firms, and not having an effective promotion and marketing understanding are seen as the primary reasons. Despite of these negative factors, in Turkey being an developing country, the insurance sector has a potential to show at least a threefold improvement from todays’ position in a short time in case of precautions to be taken by state and applying these precautions by seriousness.