Middle East News - Turkey: Insurers concerned about rising motor third-party losses

Source: Middle East Insurance Review | Mar 2016

Insurers in Turkey reported a loss of TRY1.7 billion (US$579.3 million) in the compulsory motor insurance business for the first nine months of last year, according to the Insurance Association of Turkey (TSB) in a statement.

The figure is three times the losses of TRY566.7 million during the first three quarters of 2014, and almost double the losses of TRY884.8 million suffered for the whole of 2014.

The insurers have attempted to mitigate the losses by hiking premiums, a move which has drawn protests, especially from the commercial vehicle sector.

The TSB said that compulsory third-party auto insurance has been driven by several factors, including the lack of standards in compensation and vehicle depreciation calculation, weakening of the Turkish currency leading to increased auto part replacement costs, and uncertainty in legislation.

TRY1 = US$0.34

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