The Insurance Association of Turkey (TSB) has announced for the first time data related to takaful or participation insurance, showing that total contributions generated in the segment amounted to TRY109.47 million (US$28.8 million) for January 2018.
Of the January 2018 total, non-life business accounted for TRY105.24 million or 96% while life business generated premiums of TRY4.24 million.
The lion’s share of takaful insurance operations was in motor insurance which generated premiums of TRY68 million, or more than 60% of total takaful contributions.
Seven companies offer takaful. The largest among them is Neova Insurance which produced premiums of TRY80.82 million in January, representing a market share of 74%. According to information on its website, Turkapital, with a 53% stake, is the majority owner of the insurer. Other shareholders include Al Muthanna Investment (5%); First Takaful (35%), a technical partner that brings extensive know-how; while Kuwait Turkish Participation Bank (7%) provides local know-how and an extensive pool of potential policyholders.
Last year, the Undersecretariat of the Treasury published the new regulation, called “Procedures and Principles of Participation Insurance Business”. The aim of the regulation is to set out the procedures and principles regarding participation insurance or takaful, ensuring the reliability of the system and the rights and interests of participants.