Turkey: Car dealers to establish own insurance company
Source: Middle East Insurance Review | Apr 2018
The Automotive Authorised Dealers Association (Oyder) plans to establish a new insurance company, in a decision made at a national meeting in early February.
Mr Murat Sahsuvaroglu, Oyder Chairman, expects that the new entity will have a portfolio size of TRY850 million (US$217.3 million) this year due to the fact that around 1.5 million second-hand vehicles are sold each year and some of the related motor insurance policies are marketed through automotive authorised dealers.
“With cross-selling, it will be possible to easily increase the initial portfolio of TRY850 million to higher levels, he said, according to Automobile News.
Mr Sahsuvaroglu added that the net premium production in the auto branch for the last five years was about half of the total premium production of the insurance sector. “The auto sector, which has a significant share, grows a bit more with every new vehicle that is on the road and becomes the sector’s engine.”
He noted that with their own new insurer, authorised dealers will have a say in various aspects of the business, including insurance production and damage repair. Some dealers are unhappy that a number of vehicles have been sent for repairs or maintenance at unauthorised workshops. The association aims to stamp out such practices with its own insurer. Other details about the new insurance company have yet to be announced.
Currently, 39 insurance companies, 18 pension companies, four life companies and one reinsurance company are actively operating in the Turkish market. Another seven insurers and one reinsurer do not procure new contracts, according to information posted on the website of the Insurance Association of Turkey. M
TRY1 = US$0.26