News Middle East18 Dec 2018

Turkey:No increase in premiums for mandatory motor insurance in 2019

18 Dec 2018

The Treasury and the Ministry of Finance have issued a letter to insurance companies, announcing that there would be no increase in premiums for mandatory motor insurance in the new year.

In the same announcement, the Ministry also stated that there would be no change in coverage limits in 2019.

Thus, the expectations of insurers are dashed as they had expected to see premium increases in January 2019. This was because the authorities had allowed insurers a one-time premium increase of 5% in January 2018. Throughout 2018, insurers were also allowed to impose their 1.5% monthly motor premium increases as a form of inflation adjustment.

For 2019, the ministry's report stated that traffic insurance premiums will not be increased by 1.5% each month, reported Haber 365.

Motor losses

Insurers estimate that they are likely to report losses of TRY100m ($18.6m) for 2018 in this business class, after chalking up losses of more than TRY75m for the first nine months of this year.


 

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