The Insurance Industry in Turkmenistan, Key Trends and Opportunities to 2017

Date: 06-Jun-2013
The Turkmen insurance industry is very small, both in terms of size and significance. Insurance penetration stood at just 0.2% in 2012, compared to the global average of 6.7%. Between 2008 and 2012 the industry achieved significant written premium value growth rising from TMT 96.1 million (US$33.7 million) to TMT200.7 million (US$70.4 million), recording a CAGR of 20.2%. This was due to the robust economic development and the increased demand for non-life products. These factors coupled with new legislation are expected to drive the industry from TMT200.7 million (US$70.4 million) in 2012 to TMT412.3 million (US$144.7 million) in 2017, at a CAGR of 15.5%.

 

Insurers typically cede a proportion of their revenues to reinsurance providers to avoid financial losses in times of financial crisis or other unforeseen events. Turkmen providers tend to retain a large proportion of their revenues and cede less to reinsurance providers. The retention rate of life insurance providers stood at 97%.

 



 

The industry registered significant growth between 2008 and 2012 partly due to a favorable regulatory framework and robust economic development. The property and assets of overseas institutions need to be insured by the sole insurance provider, the State Insurance Company of Turkmenistan, this fuelled the demand for insurance in the country. The new Insurance Act has also allowed multinationals to own up to a 49% stake in domestic companies. The insurance regulatory authority enacted a provision relating to environmental insurance in 2013 and made it compulsory to obtain a policy for all the service providers involved in ecologically risk activities.

 

The industry is dominated by the non-life segment, which accounted for 97.3% of the industry’s gross written premiums in 2012, driven by the rising demand for property and compulsory third-party motor policies. The life segment is expected to remain the smallest segment of total premiums generate in 2017 with just 0.11%, while the personal accident and health segment is expected to account for 2.98% of the industry’s overall written premium values. The non-life segment is expected to fall to 96.9% in 2017.

 

Reasons to buy

Receive an assessment of the competitive dynamics in the Turkmen insurance industry.

Understand the demand-side dynamics, key market trends and growth opportunities within the Turkmen insurance industry.

Identify the growth opportunities and market dynamics within key segments.

Gain insights into key regulations governing the Turkmen insurance industry and its impact on companies and the industry's future.

Gain the knowledge needed in order to make strategic business decisions using in depth historic and forecast industry data related to the Turkmen insurance industry and each segment within it.

 

Comprehensive Table of Contents and more on the report @ http://www.rnrmarketresearch.com/the-insurance-industry-in-turkmenistan-key-trends-and-opportunities-to-2017-market-report.html