Fall in inflation rate offers hope to market currently inhibited by the narrow range and the short term nature of its product offerings

Inflation in Turkey has reduced considerably and in 2004 was down to 8.5% from 25.3% in 2003 and this, together with the change to the currency denominations in January this year, has renewed optimism in the life insurance market.

As at the end of 2004 there were a total of 53 insurance companies licensed to operate in Turkey of which 21 were pure life (10 also have a licence to write pension business), 27 were pure non-life and five retained a composite licence. In addition there are three local reinsurers and one dedicated pension company.