Insurance Premium Production in Türkiye Surges 51% in 2025
Insurance
Türkiye’s insurance industry has witnessed remarkable momentum in 2025. According to the Insurance Association of Türkiye (TSB), total premium production between January and July surged by 51.2% compared to the same period last year. This rapid expansion underscores the growing demand for both life and non-life insurance products in the country.
During the first seven months of 2025, premium production reached an impressive 669.03 billion TL, up from 442.54 billion TL recorded in the same period of 2024. The figures highlight a sector experiencing robust growth despite broader economic challenges.
Breakdown of Premium Production
The lion’s share of premium production came from non-life insurance, which accounted for 575.9 billion TL. Meanwhile, life insurance contributed 93.1 billion TL to the total. This distribution meant that non-life insurance products held an 86.1% market share, while life insurance secured 13.9%.
Interestingly, this composition marks a subtle shift compared to 2024, when non-life insurance made up 88.46% of the market and life insurance stood at 11.6%. While non-life still dominates, the accelerated growth in life insurance suggests changing consumer preferences and increased awareness about long-term financial security.
Growth Rates in Life and Non-Life Segments
When analyzed in terms of growth, the difference between life and non-life insurance becomes even more striking.
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Non-life insurance premium production increased by 47.3% year-on-year.
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Life insurance premium production expanded by a remarkable 80.6%.
In terms of real growth—after adjusting for inflation—the insurance market still showed healthy progress. Non-life insurance grew by 10.3%, life insurance rose by 35.3%, and the overall sector advanced by 13.2%. These numbers indicate that the sector’s expansion is not merely inflation-driven but reflects genuine market demand.
The Rise of Participation Insurance
A particularly notable trend has been the sharp increase in participation insurance (known as katılım sigortacılığı in Türkiye). This segment, which operates in line with Islamic finance principles, recorded a 56.2% increase in premium production, reaching 37.79 billion TL.
Participation insurance has steadily grown in recent years as consumers seek financial products that align with ethical and interest-free banking standards. The 2025 figures further cement its role as one of the most dynamic sub-sectors within Türkiye’s insurance market.
Factors Driving the Insurance Boom
Several underlying factors explain why Türkiye’s insurance sector is growing at such an accelerated pace:
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Rising Awareness of Financial Security – Increasing economic uncertainty has prompted individuals and businesses to seek protection through both life and non-life policies.
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Regulatory Support – The government and TSB have introduced measures to expand insurance penetration across the population.
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Expanding Middle Class – As more households move into higher income brackets, the demand for life insurance and savings-based policies has intensified.
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Diversification of Products – Insurance providers are offering a wider range of tailored products, from health and automobile coverage to pension-linked life insurance plans.
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Digitalization of Insurance Services – Online platforms and mobile apps have made it easier for consumers to compare, purchase, and manage their policies.
These factors collectively contribute to a healthier and more resilient insurance ecosystem, creating long-term opportunities for both domestic and international insurers.
Implications for the Future
The sharp rise in both life and non-life premium production demonstrates that Türkiye’s insurance market is moving beyond traditional boundaries. The growth of participation insurance also suggests a broader diversification of financial products available to consumers.
Analysts believe this trajectory will likely continue in the coming years. As the penetration of insurance products remains relatively low compared to developed markets, Türkiye still has significant room for expansion. With sustained regulatory support and technological integration, the country’s insurance sector is poised to become a cornerstone of financial stability.
The 51.2% surge in insurance premium production during the first seven months of 2025 illustrates the growing importance of insurance in Türkiye’s economic landscape. With both life and non-life segments expanding rapidly, and participation insurance gaining strong traction, the industry is well-positioned for further growth.
This upward trend not only highlights the sector’s resilience but also reflects shifting consumer priorities towards long-term financial protection and stability.