Losses at MTPL increase fivefold
In 2022, the insurance sector achieved a total underwriting profit of almost six billion liras in non-life lines. In the traffic insurance branch, the technical loss exceeded 11 billion lira, although the average premium increased from 852 liras last year to 2100 liras. Looking at the balance sheet profitability, it was found that the sector, which had a total premium generation of 253 billion liras, had a profit of 10 billion liras in life and pension insurance and a profit of eight billion liras in non-life lines.
A new tier system for MTPL
With the amendment to the regulation, which will come into effect on April 15, 2023, no-claim discounts and premium increases due to claims will now be applied based on the tier system from 0 to 8. No-claim discounts will be available up to 50 percent. The total deduction for policy cancelation has been increased from 40 liras to 250 liras. Now, there is also a 10 percent premium discount for electric vehicles.
Eko-lojik – Turkey’s greenhouse gas emissions continue to rise
With a 7.7% increase compared to 2020, Turkey’s total greenhouse gas emissions were calculated at 564.4 million tons of carbon dioxide equivalent. Total greenhouse gas emissions per capita were 6.7 tons of carbon dioxide equivalent. According to ourworldindata.org, Turkey’s greenhouse gas emissions are close to the global average. However, Turkey ranks just behind the top 10 countries in total greenhouse gas emissions.
Constitutional court decision hits sector harder than earthquake
Maher Holding Insurance Group President Ahmet Yaşar says the Constitutional Court’s decision on compensation for loss of value and personal injury alone has cost Quick Insurance Company 600 million liras, adding that the decision will affect insurance companies’ reserves by 35-40 percent. “We call it the earthquake of the century, but the Constitutional Court’s decision has hit us more than that. Because earthquakes are a risk we are prepared for, but this decision is not,” Yaşar said.
Advantageous loan option for those who remain in the Private Pension System
The amendment of Regulation PPS by the Insurance and Private Pensions Regulatory and Supervisory Authority (IRSA) introduced the option of debt transfer, allowing participants to take out loans on favorable terms thanks to their savings without having to leave the system instead of terminating their contracts due to financial needs. Thanks to the regulation, the PPS participants will be able to transfer all or part of their receivables from private pension contracts, with the exception of state contributions, to banks through a “receivables transfer agreement”.
A holistic system for compulsory earthquake insurance and homeowner’s insurance
President of the Insurance and Private Pension Regulation and Supervision Agency (IRSA) Mehmet Akif Eroğlu gave important messages at the “Compulsory Earthquake Insurance New Structure Workshop” organized by the Turkish Catastrophe Insurance Pool (TCIP).
At the meeting, President Eroğlu stressed the importance of creating a holistic system in which TCIP and voluntary home insurance are treated together in terms of earthquake guarantee and stated that TCIP and IRSA have started working on reform in this area.
Turkiye: Insurance market traits support affordability
Turkiye ranks 10th out of 16 markets for life and health (L&H) insurance inclusion, according to Swiss Re Institute (SRI). In its “Life and Health (L&H) Insurance Inclusion Radar” report, SRI shows that the Turkish market scores lower than the emerging-market average in availability and accessibility, but fared better in affordability.
The world’s most valuable brands in insurance revealed
“Ping An is the world’s most valuable insurance brand for the seventh consecutive year, with a brand value of US$32.2 billion,” noted Brand Finance. “The Chinese brand retains this title, despite a 25% year-on-year brand value reduction. Ping An’s brand is now worth half of its value prior to the pandemic.”
