Tendency to ‘takaful’ insurance which is an Islamic insurance system will increase with government’s support to interest-free finance system and with the increase of participation banks. Takaful insurance is expected to have 5 percent rate with the participation banks.
Concordantly to the increasing demand in the World and with government’s support to the interest-free finance system, ‘takaful’ meaning insurance in Islamic procedures, is expected to be demanded and reach approximately 5 percent marketing rate in the medium term in the insurance industry, whose magnitude is 24.5 billion liras. Authorities have pointed out that the growth rate of Islamic insurance is expected to grow in accordance with the World’s annual growth rate of 10 percent. Used in Islamic insurance terminology, takaful is identified as a system of the concept of cooperation, social solidarity and sharing other people’s damages. Pointing out that Turkey has the potential for Islamic insurance to grow in, Mehmet Bostan, General Director of Vakıf Retirement, has said: “There are spurts in the field of Islamic insurance industry. There are expectations both in the industry and by participants. Developing of Participation banks in finance industry has created a great opportunity for the entry of Islamic insurance to the industry.”
GROWING 10 PERCENT
Bostan has stated that the growth of this field will increase with the increase of participation banks, varying of Islamic finance funds and legal regulation about Islamic insurance. Ayhan Sincek, General Director of Participation Retirement which is a partnership of Albaraka and Kuveyt Türk, “We believe that growth in this field will increase due to the choices of participation insurance by the people who avoid traditional insurance products because of their tenderness in Turkey in accordance with the demand in the World.” Sincek has added: “We aim that participation insurance, which has been empowering by growing over ten percent every year, will perform in accordance with this growth in Turkey.” Sincek has also pointed out that Katılım Emeklilik has exceeded 35 thousand policies in life insurance branch: “We aim at adding at least 40 thousand new life insurance clients to our company next year.”
Özgür Koç, President of Participation Insurance Foundation and General Director of Neova Insurance that gives services in other branches as well as life insurance branch, has said that they have reached approximately 2 percent marketing rate by producing Premium over 500 million Turkish Liras by the end of the year.
NEW COMPANIES ARE EXPECTED
Uğur Gülen, General Director of Ak Insurance, which is an affiliate of Sabancı Holding and Ageas and not involved in participation insurance for the time being, has answered the questions about whether they have plans about this field: “Malaysia is one of the most common countries of participation banks and partners of Sabancı Holding, Ageas’ affiliate in Malaysia is one of the biggest companies in the World in the course of participation insurance. Therefore, if our partner forms an opinion about participation insurance’s growing insurance potential in Turkey, we can be interested in this field.” Doğa Insurance has obtained its license in the Islamic insurance field. Nihat Kırmızı, Chairman of the Board of the company, has pointed out that takaful insurance will be an alternative to the insurance industry just like participation banking. Kırmızı: “I believe that 3-4 companies will enter recently developing takaful insurance industry by 2018.”