Insurance firms attracted by Turkey's young population, growing middle class

Due to its young population and growing middle class, Turkey is a fruitful country for the insurance business, according to BNP Paribas Cardif, a new player in the local field. The insurance penetration's low ratio to the country's gross domestic product is a good indicator of this potential, says the top executive of the company market for international insurance companies, according to the top executive of BNP Paribas Cardif, the insurance unit of BNP Paribas that recently acquired Turkey's Fortis Emeklilik and Hayat Insurance. The local branch aims to secure a 5 percent share of this growing market, Jean-Bertrand Laroche, the CEO of the group, told a press conference in Istanbul yesterday. "Turkey stands out as a promising market for us," as the country's strong economic growth accelerated to 11 percent in the first quarter, outpacing China, said Laroche. Turkey's expanding middle class will drive the growth in the insurance sectors, Laroche said. The company aims to reach nearly 900 million Turkish liras in total volume of individual pension funds by the end of next year. As of the end of last year, this figure stood at around 450 million liras.