Turkish financial system in general and the insurance sector in particular have undergone major structural and regulatory changes in the past two decades, as part of the financial liberalization programs.The new Turkish insurance law, prepared in accordance with the European Union norms, was passed into effect in June 2007, resulting in a more competitive and afficient health insurance system, which works in synergy with the healthcare market.

The Turkish insurance market has witnessed impressive growthin recent years but its size is still relatively low compared to the US and the Europe, primarily due to low rate of penetration and density.These two factors offer significant potential for market growth.According to the data published by the Association of Turkish Insurance and Re-Insurance Companies,premiums generated by the insurance market in Turkey were 9.4 billion USD in 2010, representing a 14% increase over the previous year.

As of October 2010, there were 58 insurance companies and 1 re-insurance company in Turkey.Of the 58, 52 were private and 6 were publicly owned.Foreign ownership has increased significantly in the Turkish insurance industry in recent years and 45 of the private companies today have foreign owners or partners, including the global powerhouses Aviva, AIG/Chartis, Axa, Allianz, Aegon, Groupama, Ergo and Mapfre.Multiple distribution channels are employed, including agents, brokers, direct sales teams, banks, leasing firmsand mortgage companies.Growth and innovation in the health insurance market will surely complement the advancements in healthcare provision, increasing Turkey's global competitiveness.