In the pool system, the driver without any accident receives the penalty

The Turkish insurance industry complains about the current pooled traffic insurance system. While traffic insurance policies that do not produce sufficient premiums cause losses to the industry, they also place the burden of the faulty driver on the faultless drivers.

According to the data reflected in the July 2023 Situation Report of the Insurance Association of Turkey (TSB); It has lost 19.5 billion lira in the last 12 years with 21.5 million policies from the road traffic vehicle branch, which reached 26.5 million by the end of last year. This year, the expected loss is 12.5 billion lira. It was stated that the main reason for the loss was the incompatibility of the floor and ceiling pricing of the current pool system with the economic situation. It was pointed out that making a discount in April, when an increase of at least 40 percent was required in an inflationary environment, had a negative impact on the sector.

The report underlines that the solution is driver-based pricing, and that in the current system, faultless drivers suffer the consequences of accidents. The report stated that the compulsory tariff model, which was introduced for the insured to purchase policies with lower premiums, had the opposite result and added: “Bad drivers who make 3-4 accidents a year are punished by those who do not have accidents.” It was underlined that with the free tariff, these bad drivers can be disciplined with high premiums. In addition, it was shown that a policy could be produced with a system based on which rules the driver’s penalty points are against.

Mehmet Akif Eroğlu, Chairman of the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) regarding traffic insurance, said, “We have completed 30 articles so far. With the new law, the sector will be a little more relaxed. Our goal is to move to free pricing. We are creating a Driver Registry Certificate infrastructure to make this more robust. “When we switch to free tariffs, insurance companies will be able to price their customers more clearly and accurately,” he said.