Motor insurers are under cost pressure in motor third-party liability insurance (dubbed traffic insurance) as losses continue to increase in the branch, according to the vice president of the Insurance Association of Turkiye (TSB), Mr Ahmet Yasar.
He pointed out that the traffic branch saw an increase in technical losses of TRY34.9bn ($922m) in 2024, one and a half times higher compared to a technical loss of TRY13.9bn in 2023, reported Finans Gundem. For the Turkish insurance market as a whole, technical profits increased by 69% in 2024 to TRY103.6bn.
Although the motor loss/premium ratio decreased to 137% in 2024 from 141% in 2023, price pressures continue due to the mandatory tariff system, Mr Yasar said.
He added,” We anticipate that a more competitive environment will emerge in this area and prices will decrease with the transition to free pricing."