Insurance companies in Turkiye will not face huge difficulties in adopting inflation accounting, according to EY Turkiye tax partner and leader of financial services Levent Atakan.
The insurance market in Turkiye generated a total premium income of TRY483bn ($15.1bn) in 2023, an increase of 105% compared to 2022, Mr Ugur Gulen, president of the Insurance Association of Turkiye (TSB), indicated.
Compulsory motor third-party liability (CMTPL) insurance business, also referred to as traffic insurance in Türkiye, chalked up a technical loss of TRY13.7bn ($424m), after offsetting investment income, in 2023. The loss widened from TRY11.7bn in 2022, Insurance Association of Türkiye president Ugur Gulen said when he reviewed the performance of the insurance industry..
Fitch Ratings has upgraded Turk P&I's Insurer Financial Strength (IFS) Rating to 'B+' from 'B'. The outlook is 'Positive'.
War risk premiums appear to have soared from approximately 0.1% of the value of a ship to 0.7-1%, given the perils faced by commercial ships in the Red Sea, says the Insurance Association of Turkiye (TSB).
TARSIM, the Agricultural Insurance Pool, has paid out TRY39m ($1.2m) to greenhouse producers in the southern province of Antalya whose crops were damaged by a recent tornado.
The problem of insufficient premiums in compulsory motor third-party liability insurance (known as traffic insurance) imposes a great burden on the sector, with many insurers suffering technical losses in the branch, according to Mr Ceyhan Hancioglu, general manager of Magdeburger Sigorta.
The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) will hike premiums for compulsory motor third-party liability insurance (also called traffic insurance) based on the damage cost index, starting in May 2024.
The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) has stipulated that insurance, reinsurance and pension are to commence the implementation of inflation accounting on 1 January 2025.
The insurance industry in Turkiye faces several challenges, according to the chairman of the Istanbul Chamber of Industry, Mr Erdal Bahcivan.