Closing the Insurance Gap in Turkey: Prioritizing Key Factors and Strategies

Turkey presents a unique opportunity for improving insurance coverage, thanks to its dynamic economy, high working-age population, and strategic geopolitical location. Despite its significant economic potential, insurance penetration in Turkey is relatively low compared to other emerging nations. This study aims to identify the primary indicators and prioritize investment areas to improve Turkey's insurance penetration. The study employs the AHP method to weight selected criteria based on a literature review, relying on expert opinions. Subsequently, the TOPSIS method is used to rank the alternative results. The findings indicate that probability and level of competition are the most critical factors determining insurance coverage in Turkey. Additionally, technological transformation and intellectual capital are the most important investment areas to increase penetration in the country, while innovation is the least essential alternative. The results of our study can serve as a valuable reference point for industry stakeholders and policymakers, especially in economies struggling with low insurance penetration. This study presents a roadmap to narrow the insurance coverage gap by identifying and prioritizing strategic investment opportunities while optimizing investment returns. [Key words: Insurance coverage gap, insurance penetration, the Turkish insurance industry, investment prioritization.]