View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Analysis
November 23, 2015updated 22 Jul 2022 4:23am

IIC distribution channel forecasts for Greek and Turkish life markets

Distribution channel forecasts for the Greek and Turkish life insurance markets, from Timetric's Insurance Intelligence Center

By Ronan Mccaughey

Greek life market

Greece IIC channels

  • Agencies are the main distribution channel for the Greek life segment. The value of new business gross written premiums collected through the channel decreased from €1.32bn ($1.49bn) in 2009 to €0.8bn in 2013. This value is projected to reach €832.8m by 2018.
  • The number of new policies sold by agencies declined from 2.6m in 2009 to 2.59m in 2013. The number is expected to increase to 2.62m in 2018.
  • Agency branches in Greece are also staffed withfinancial advisers.
  • The value of new business gross written premium collected through insurance brokers decreased from €500.9m in 2009 to €341.6m in 2013.
  • Brokers accounted for 23.3% of the new business gross written premium in 2013. This is expected to increase marginally to 23.5% by 2018, registering a new business gross written premium of €354.7m.
  • The number of new policies sold by brokers increased from 987,770 in 2009 to 1.07m in 2013.
  • This number is expected to increase to 1.11 million in 2018. As well as several local brokers, large brokers in the global market such as Aon and Marsh are also present within the country.
  • Direct marketing channels in the Greek life segment comprise insurers’ branches, call centres, e-mail marketing and direct mail.
  • They emerged as the fourth-most-popular channel in the segment after agencies, brokers and other distribution channels.
  • The number of new policies sold by direct marketing increased from 262,842 in 2009 to 298,859 in 2013. This number is set to reach 313,131 in 2018.

Turkey IIC distribution channel forecast

Turkish life market

  • Bancassurance was the largest distribution channel in 2013. Leading life insurers such as Ziraat and Garanti had parent banks that sold their products through their bank branches.
  • However, other companies such as Anadolu, Allianz and Aviva have extensive bancassurance agreements with the country’s leading banks.
  • The channel’s share of total gross written premium through new business for distributing life products increased from 56.4% in 2009 to 81.2% in 2013, due to an increase in penetration of the financial sector and strong economic recovery following the global financial crisis.
  • Authorised agencies have played an important role in the expansion of the Turkish life segment. The channel offers insurers a client base, strong brand reputation and an existing sales force to increase penetration of insurance products in the country.
  • Alternative distribution channels such as campaigns, advertising, sponsoring events and club memberships have also been extensively utilised by Turkish life insurers. Allianz has sponsored events such as Formula 1 races, Paralympic events and other sports events.
  • Between 2013 and 2018, bancassurance is projected to remain the primary distribution channel for the Turkish life insurance segment, followed by agencies. Turkish banks will focus on increasing feebased income by promoting the sale of f inancial products such as life policies as a platform for longterm savings and investment.
  • New strategies that insurers are expected to include consist of cost-control measures, achieving economies of scale, and increasing transparency to increase consumer confidence.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Life Insurance International