Regulatory development and sectoral analysis of participation insurance in Türkiye

The element of risk is present in people's lives and in almost all workflow processes of institutions, causing significant financial losses. People have developed insurance activities to reduce the effects of these risks. Participation insurance activities have developed in order to meet insurance demands within the İslamic financial ecosystem. In the study, first of all, participation insurance activities and application models, which are one of the important stakeholders of the İslamic financial ecosystem, are discussed. By examining the developments regarding the practice and legislative structure of participation insurance, important issues for improving the system have been identified through sector analysis. Qualitative analysis method was used in the research. Interviews were held with representatives of six different companies in the participation insurance sector. Questions about participation insurance practices, legislative structure, awareness level and sectoral development were asked to the participants. As a result of the data obtained, issues such as the legislative structure that is not yet fully established, changes and uncertainties regarding the application model, and the society's lack of sufficient awareness about insurance have been identified as the main problems of the system. In literature research, it is seen that the takaful model is further developed in academic statistics. However, in the current system in Turkey, the takaful model is not implemented. In the process of sectoral development, determining the current functioning and problems correctly becomes important. Therefore, the study is based on understanding current practices in order to improve the system and grow the industry. Expected to achieve this and contribute to the development of participation insurance with the sector analysis in the study.