An Examination of Credit Insurance in Türkiye and Sector Research through Semi-Structured Qualitative Interview Technique

Abstract

Purpose – It is observed that the Turkish insurance sector is shifting towards financial insurance, such as credit insurance, as opposed to traditional types like traffic and motor insurance, aiming for greater depth. Despite being a relatively new type of insurance, credit insurance, which falls under the category of financial insurance, is attracting significant interest from insurers due to its substantial potential. Credit insurance is a branch of financial insurance that provides protection to the seller against monetary receivables from buyer companies to whom the insured sells goods and services. The number of companies operating in this field, particularly among SMEs, is quite high in our country. Therefore, the development of this insurance and its provision by all non-life insurance companies in the sector is of great importance. Design/methodology/approach - In this study, a semi-structured qualitative interview technique was used with insurance companies offering credit insurance to reveal the current state of credit insurance in the sector, identify problems, obstacles, and opportunities encountered in practice, and propose solutions. Findings – It is understood that credit insurance is implemented in two different types: commercial and state-supported. The State-Supported Credit Insurance (SSCI) product is offered to SMEs, while the commercial product is offered to corporate firms. Since it is a financial product, it involves risk and is therefore offered to companies that meet certain criteria and whose financial information is accessible. The demand for credit insurance increased post-Covid-19 but remains insufficient. Additional legal regulations are necessary, and distribution channels need to be specifically informedabout this insurance. With the development of the product, it is expected to significantly contribute to exports and, consequently, the economy. Discussion – The sectoral research conducted among practitioners within the scope of this study is considered to provide guidance and contribute to insurance companies, public authorities, and other sector stakeholders.