Comparative analysis of insurance applications in participation economy

This thesis aims to examine the place of participation banking and Takaful insurance in the banking and insurance sectors in Turkey and to analyze the growth potential and sectoral dynamics in these areas. The study compares participation banks and Takaful insurance with conventional banking and insurance systems, and evaluates the development process and current status of the sector. As a result of the analysis, it has been determined that the share of participation banks in the sector has increased in recent years, with a significant growth especially in 2023. Similarly, Takaful insurance has also gained significant market shares in some branches, but in general, conventional insurance has a greater dominance in the sector. It has been observed that Turkey's insurance premium production has been increasing every year and that the insurance sector is generally on a growth trend. However, Turkey's insurance premium production per capita remains below the world average, indicating that insurance awareness needs to be raised. The thesis also examines the impact of distribution channels in the private pension system and emphasizes that individual direct sales and banks are the most common channels, but the use of digital and mobile platforms should be increased. Among the important findings of the study is that the insurance sector grows at a slower rate in developing countries, and therefore, it is necessary to increase insurance awareness and facilitate access in these countries. A detailed analysis of Neova Sigorta's premium production reveals that the company recorded significant growth in some lines of business, but experienced declines in the marine branch. In this context, strategic restructuring and the development of new marketing strategies are recommended. In conclusion, this thesis presents the current state of participation banking and Takaful insurance in Turkey and the potential for development in these areas, and offers recommendations for achieving a larger market share and sustainable growth in the insurance sector. Increasing the promotion of Takaful insurance in the global market and implementing innovative product development strategies in conventional insurance are critical for the future growth trends of the sector. Takaful has great potential in Turkey and can make significant contributions in various areas. Takaful has positive impacts in areas such as economic growth, employment growth, financial inclusion and social trust. However, challenges such as lack of information, legal regulations and operational costs should also be considered. The future success of takaful is closely linked to government support, education and awareness campaigns, media outreach, and effective use of technological innovations. Increasing education and awareness, increasing the variety of financial products and service quality, government support and legal regulations are the main factors that will determine the success of takaful. Technological innovations and digitalization will enable takaful to reach wider audiences and gain acceptance. The growing interest of the young population and the recognition of takaful as a reliable option in times of financial crises will further reinforce the future success of this system.