Turkey: MTPL insurance losses to exceed $500 mln
Source: Middle East Insurance Review | Nov 2017
Turkiye Liability
Expected losses in motor mandatory third-party liability (MTPL) insurance will still exceed TRY2 billion (US$548.9 million) for the year despite steps taken by the government to improve the business, including setting up a high-risk auto insurance pool.
Mr Mehmet Akif Eroglu, Secretary General of Insurance Association of Turkey (TSB), said that the expected loss from MTPL business would be around TRY2.1 billion, down from an earlier estimate of TRY2.3 billion. The loss reduction of TRY200 million is attributed to the improvements made to MTPL insurance, reported Insurance Gazette.
Noting that there have been calls for liberalised motor insurance pricing, he said: “We cannot solve the motor insurance problem by talking about premium only. Structural changes are needed.” He cited as an example the need to reduce the motor accident rate.
Mr Eroglu was speaking at a recent insurance conference during which he outlined the latest developments in the sector such as in motor insurance and the private pension system.
The government established the high-risk motor pool because some insurers had avoided covering high-risk vehicles, such as buses and commercial goods carrying vehicles, after a ceiling price was imposed on compulsory traffic insurance in April. The cap was introduced after motor premiums shot up to cover losses in this class of business. M
TRY1 = US$0.27