Page 15 - Turkinsurance Digital Magazine

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to reach approximately 61 billion dollars investments decreased both in number and
by 2028? KPMG Turkey Insurance Indus- monetary terms. It is also noteworthy that
try Leader Tuğrul Uzun said, "We see that there is no fintech or insurtech public of-
large insurance companies are setting up fering in the first half of 2022. Notably,
certain funds to invest in startups, includ- there is no fintech or insurtech public of-
ing insurtech." fering in the first half of 2022.

Nowadays, when digitalization affects "Insurtech has great
every aspect of life, the insurance sector
benefits from all the innovative features development potential in
promised by the concept of technology. our country"
In this sense, accessing insurance ser-
vices from Internet sites and mobile ap-
plications by people can be shown as the In light of these developments in the world,
first step of the digitalization of insur- KPMG Turkey Insurance Sector Leader
ance. With the spread of digitalization in Tuğrul Uzun gave information about the
the sector, the expression “Insurtech” is status of insurtech investments in Turkey
now used as the equivalent of insurance and said that insurtech investments in
technology today. While investments in Turkey are not fully mature yet, as in oth-
digital initiatives worldwide are increas- er similar countries. Uzun said: "We can
ing yearly, the insurtech sector is at the say that insurtech has great development
forefront of these initiatives. According to potential in our country, as incubation
the Global Insurtech Market 2021 report, centers established in recent years, startup
the global insurtech market size is expect- companies established in R&D centers of
ed to reach approximately $61 billion by technical universities, and insurance com-
2028. It is also projected to record a com- panies have begun to prioritize technolog-
pound annual growth rate (CAGR) of 48.8 ical development in their agendas. With
percent from 2021 to 2028. In the world, the increasing insurtech activities, events,
especially in the USA, the leadership in and awareness in the sector, it has started
insurtech investments has been preserved to be kept on the agenda and the subject of
great demand both in Turkey and around for everyone since the first day. sectoral reports and will accelerate. Basi-
the world and is preferred by many entre- cally, we can say that insurtech's goal is
preneurs. In the first half of to offer innovative technological solutions
that will improve the activities of insur-
All companies that carry out their work 2022, 174 insurtech ance companies and the entire insurance

in this field easily reach many users in a investments and funding industry. Unlike traditional insurance, In-
much shorter period thanks to Insurtech were made, with a total surtech provides more customer-oriented
and perform all operations at a much solutions and designs a new generation
lower cost. The technology, which allows value of $5.1 billion insurance approach by aiming to integrate
companies to be much more aware of technological solutions with the tradition-
user behavior, enables users to serve their On the other hand, according to the “Q2 al industry to reduce fixed costs."
transactions anywhere at any time via Quarterly Insurtech Insights” report pub-
smart devices. Uzun stated that the most significant con-
lished by the research company FT Part- tribution to the insurtech sector in Turkey
ners Research in July 2022, it is seen that after 2019, with the effect of the Cov-
The Insurtech sector will insurtech investments made globally in id-19 pandemic, was provided by mobile
reach 61 billion dollars by the first six months of 2022 slowed down banking. "When we evaluate the sector's
2028 compared to the record peaks in 2021. future by looking at all these figures and
Among the important reasons for this are
developments, we see that large insurance
rising interest rates, increasing economic companies have established certain funds
While investments in digital initiatives uncertainties, and, accordingly, the de- to invest in startups, including insurtech.
worldwide are increasing yearly, the in- crease in the investment values of compa- This situation also sheds light on the fu-
surtech sector is at the forefront of these nies compared to the past. It is also stated ture of strategic investments by tradition-
initiatives. So, how is the situation of this in the report that the most significant in- al insurance companies.”
new sector in Turkey, which is expected vestments were made in the USA, but the