30 April 2013 Insurance

Growth potential in Turkey for re/insurers

Global re/insurers could benefit from Turkey’s recent construction boom as domestic insurers in the region struggle to keep up with the size and complexity of infrastructure and construction risks, according to Namik Gulsun, executive director, EMENA at Faber Global, a trading division of Willis.

“Domestic insurers must take advantage of this growth by promoting the use of more specific insurance covers for the new assets it is creating,” said Gulsun. “While they cruise slowly but surely towards increasing insurance penetration in the country, Turkish insurers must also adapt and become more responsive to new types of risks that they consider ‘unusual’ in terms of sophistication or size.”

The huge increase in scale and complexity of construction projects and assets in Turkey is largely driven by the government’s use of Project Financing – an initiative that allows the private sector to provide financing for construction projects, which will eventually be handed back to the government.

“This has left Turkey’s insurers playing a game of catch up,” said Gulsun. “While the industry is astute at covering traditional risks, it has not yet become attuned to covering more specific complex risks that the country’s recent economic boom is creating. This is where reinsurers with global expertise can offer assistance and support in creating appropriate programmes to cover more complicated risks.

“Faber Global recently brokered coverage for the construction of the Istanbul/Izmir motorway: one of the largest construction projects in the world. Our Global Construction Team was able to help the project’s insurers navigate complex risks and match them with appropriate reinsurance cover.”

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk