When insurers call for free tariff rates for traffic (compulsory motor third-party liability) insurance, foremost on their mind is that premiums must be priced fairly, according to Insurance Association of Turkiye (TSB) secretary-general Ozgur Obali.
Motor insurers posted a combined underwriting loss of TRY33bn ($1bn) in 2023 in the traffic (compulsory motor third-party liability) insurance branch, according to Insurance Association of Türkiye president Ugur Gulen. No company made an underwriting profit in the branch.
The insurance penetration rate in Turkiye reached 2.3% for the first time in the last 10 years and the country is moving towards the goal of reaching 3%, according to Mr Ugur Gulen, who was re-elected as the president of the Insurance Association of Türkiye (TSB) in April 2024.
Regulations need to be drafted to cover the issue of equivalent parts in compulsory motor third-party liability insurance (also known as traffic insurance), according to Mr Davut Mentes, the president of the Insurance and Private Pension Regulation and Supervision Agency (SEDDK).
Turkiye's need for a pay-as-you-go model elderly care insurance is not just a policy problem but also problem that has a bearing on macroeconomic stability, according to Mr Bunyamin Esen, a Social Security Inspector and former head of Strategic Development at the Social Security Institution.
Insurance industry figures have once again called for the free pricing of motor compulsory third-party liability insurance (also called traffic insurance) to resolve underwriting losses in this insurance branch.
Insurance companies in Turkiye will not face huge difficulties in adopting inflation accounting, according to EY Turkiye tax partner and leader of financial services Levent Atakan.
The insurance market in Turkiye generated a total premium income of TRY483bn ($15.1bn) in 2023, an increase of 105% compared to 2022, Mr Ugur Gulen, president of the Insurance Association of Turkiye (TSB), indicated.
Compulsory motor third-party liability (CMTPL) insurance business, also referred to as traffic insurance in Türkiye, chalked up a technical loss of TRY13.7bn ($424m), after offsetting investment income, in 2023. The loss widened from TRY11.7bn in 2022, Insurance Association of Türkiye president Ugur Gulen said when he reviewed the performance of the insurance industry..
Fitch Ratings has upgraded Turk P&I's Insurer Financial Strength (IFS) Rating to 'B+' from 'B'. The outlook is 'Positive'.