Turkey: Insurance association outlines tasks for 2018
Source: Middle East Insurance Review | May 2018
The Insurance Association of Turkey (TSB) is starting a project to increase the quality of insurance industry data, according to Mr Can Akin Çaglar, president of the association.
“We are also in the design stage of an insurance rating project for the insured,” he added.
At the same time, the TSB is working to convince the insurance regulator to authorise a hike in motor premiums this year by at least the inflation rate. It also aims to resolve issues like cost cutting, use of equivalent parts and depreciation in motor business, according to a report in Insurance Gazette.
Mr Çaglar said compulsory auto insurance has suffered losses for the last 11 years, a situation which threatens the financial position of insurers.
“We have communicated these troubles to our undersecretary of treasury because it is very clear that this is not sustainable,” he said. He expected new initiatives would be introduced.
In individual pension business, the TSB is demanding that contributions by the employer be started in a small and intuitive manner, the 40% rule in portfolio management be abolished and that those aged under 18 be required to join the system. By a law enacted in 2017, employees who have not reached the age of 45 are automatically included in the Individual Pension System. As of 21 February 2018, a total of nine million employees were members of the scheme which had reached a fund size of TRY2.2bn ($540.5m).
Commenting on new areas of growth, Mr Çaglar pointed to credit and surety insurance business as well as takaful. M
TRY1 = $0.25