Analysis of Turkish Private Health Insurance Sector

Abstract

Although the legal basis of the private health insurance sector in Turkey dates back to 1926, its gaining momentum started in the post-1980 period. Especially in 1990, after its formation of an independent insurance branch, there also has been a revival in the sectoral deeping. However, the sector still does not have the expected depth on an international scale. For 2004 and 2013, the development sorting of the private health insurance sector for EU countries and Turkey has been made. Analysis of prime components which are widely used in sorting studies has been preferred as a method. As a result of analysis of the prime components, Turkey, which ranked 13th among 23 countries according to premium penetration in 2004, ranked 10th among 24 countries in 2013. While it was 11th out of 17 countries, Turkey, which could not demonstrate the same performance at the payment penetration, ranked 10th out of 20 countries. Therefore, despite the rapid increase in premium production, the sector profitability is also likely to increase since the same performance cannot be shown in the payments.