Market structure and concentration level of the Turkish insurance sector

The economic environment contains many risks. For this reason, insurance activities are an important field for both developed and developing countries. The importance given to insurance activities in developing countries is more limited to developed countries. The insurance sector in developed countries can support the economy more than developing countries. This is related to many factors, especially competition. As the number of foreign investments needed by developing countries increases, competition will increase. In this study, the effects of foreign investments on market concentration level in the Turkish insurance sector are investigate. The firms in the insurance sector is analyzed both as a whole and by distinguishing between domestic and foreign firms. The analyzes are made according to the insurance policy types, on the number of insurance policies and the insurance premium. In the study covering the period between 2013 and 2021 using N-Firm Concentration Index (CR4, CR8), Herfindahl Hirschman Index (HHI), Entropy (EI) and Rosenbluth (RI) methods. It is also investigated which policy types have similar market structure with the correspondece analysis. Foreign investment with international competitive power tends to decrease the concentration level in terms of both the number of insurancec policies and the insurance premiums and to make the market more competitive.