High inflation and increases in premiums had a negative impact on insurance: Non-life stagnated – Last Minute Economic News

The newly published policy statistics of the Insurance Association of Turkey (TSB) for 2023 showed the impact of the price discussions that continued this year, especially in terms of non-life.

Last year, compared to 2022, the total number of non-life policies “written within the period” decreased by 0.5 percent to 74 million 190 thousand 556. Looking at the details of non-life insurance, the number of policies (excluding green cards) in the largest branch, compulsory traffic insurance, exceeded 19 million 454 thousand with an increase of 4 percent. The number of policies in the other auto branch, automobile insurance, decreased by 1.2 percent to 6 million 536 thousand.

THERE IS A TROUBLE IN AGRICULTURE

The decline in fire insurance, which has been the subject of criticism from the business world due to premium increases, attracted attention. The number of policies in this branch decreased by 13.5 percent and reached 5 million 785 thousand. In addition, the number of policies in the health branch, which was affected by medical inflation, decreased by 5.7 percent and was recorded as 3 million 214 thousand. On the other hand, transportation insurance policies decreased by 12.4 percent to 1.2 million units, theft insurance policies decreased by 31.1 percent to 780 thousand units, and state-supported agricultural insurance policies decreased by 6.3 percent to 2.9 million units. On the other hand, financial loss insurance policies increased by 496 percent to 637 thousand units, and engineering insurance policies increased by 15 percent to 7.9 million units.

“PET AND CYBER POLICIES ARE ATTRACTING ATTENTION”

Levent Korkut, Chairman of TOBB Turkey Insurance Agencies Executive Committee, stated that insurance diversity has increased in Turkey, one of which is pet insurance, and said, “Pet owners have difficulties from time to time due to economic reasons. In this case, insurance comes into play. “Although the age limit varies, pet insurance can be provided for cats and dogs over 6 months old and under 10 years old,” he said. Korkut also emphasized that insurances such as cyber security, parametric, building completion, state-supported commercial receivables and liability attract attention, and reminded that cyber insurance is designed to protect the financial losses of an organization or individual arising from risks such as cyber attacks and data breaches.

3 PERCENT INCREASE IN TRAFFIC PREMIUM

Insurance and Private Pension Regulation and Supervision Agency (SEDDK) once again published the “Circular on Amendments to the Circular on Highways Motor Vehicles Compulsory Liability Insurance Premiums”. Accordingly, the maximum premiums applied according to vehicle group and usage type in April 2024 will be increased by 3 percent in May 2024. As you may remember, premium increase rates were determined as 5 percent for the first 4 months of 2024, but SEDDK used its authority to apply these increase rates as 10 percent for January and February.