Turkiye: Insurers expected to increase coinsurance
Source: Middle East Insurance Review | Aug 2023
Coinsurance arrangements among insurance companies are expected to increase in the current difficult operating environment, according to Unico Sigorta CEO Ender Guzeler.
Coinsurance, which is arranged mainly for the coverage of industrial facilities, will also be undertaken for businesses and risks with lower insurance costs in the fire and engineering branches, Mr Guzeler told news outlet Sigorta Medya in an interview.
Despite the continued growth in premium income in the Turkish insurance sector, problems in the traffic branch, the shrinkage of reinsurance capacity and falling financial income, together with the increased claims due to high inflation and the devaluation in the Turkish lira, are also plaguing insurance companies.
The problems in 2022 persisted in the first half of 2023, on top of the Kahramanmaras earthquake on 6 February, causing insurance companies to reconsider their game plan.
However, Mr Guzeler expects the insurance industry to grow faster than the economy this year in real terms. While the Turkish economy expanded by 5.6% in 2022 (after 11.4% in 2021), GDP growth is expected to halve to 2.6% this year. M