STATISTICS: TURKEY 1H2015: Surging car sales not yet visible in motor insurers' business

Although at somehow more modest rates, the Turkish insurance market continued its constant growth also in 1H2015. Overall GWP increased by some 13.4%, to TRY 15.04 billion, while because of the continued deterioration of the Turkish currency against the Euro, the market results denominated in European currency only show a 9.6% growth in GWP, to EUR 5 billion.

Life insurance, still accounting for a rather small part of the premium portfolio, reported a 20.7% increase in GWP, to TRY 1.87 billion (EUR 625.4 million). Thus, its weight in the total GWP volume increased by about 1pp, to 12.5%. Bancassurance remains the main distribution channel for life insurance, with a share of about 80% of GWP.

Non-life lines posted a consolidated growth rate of 12.4%, to TRY 13.16 billion (EUR 4.38 billion).

By far, the best dynamic was shown by the property lines which saw double digit GWP growth rates: the fire insurance class recorded a 12.7% y-o-y increase in GWP, while for the "damages to property" line, including agricultural insurance; premiums went up by 24.5% y-o-y. Overall, GWP for property insurance amounted to TRY 4.08 billion. The mandatory earthquake policies represent a rather modest share of the total underwritings for the "fire and allied perils" class (~20%), but in what the number of contracts is concerned, they accounted for about 54% of the total number of property insurance contract.

Motor insurance lines only saw a GWP increase of 6.7%, to TRY 5.5 billion. Still, considering passenger car and light commercial vehicle total market increased 50.8% y-o-y in 1H2015, according to the Turkish Automotive Distributors' Association's data, the GWP growth may only demonstrate de highly competitive character of the market. In fact it is interesting observing that the number of MTPL policies decreased in 1H2015 as compared with the previous year by about 500 thousand units (6.8%), which may indicate either that new cars are not increasing the fleet dimensions, but replacing old cars or that there is am increasing percentage of insured cars on the Turkish roads. On the other hand, the number of Motor Hull insurance contracts went up by almost 400 thousand units, i.e. 17%.

In depth details about the Turkish insurance market evolution in 2014 and 1H2015 will be available in the forthcoming issue of XPRIMM Insurance Profile Turkey, to be released on October, 20th, on the occasion of the Baden-Baden TURKISH Evening

Access and download the 1H2015 Turkish insurance market statistics.

In depth details about the Turkish insurance market evolution in 2014 and 1H2015 will be available in the forthcoming issue of XPRIMM Insurance Profile Turkey, to be released on October, 20th, on the occasion of the Baden-Baden TURKISH Evening.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

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