Motor insurers are under cost pressure in the MTPL segment as losses continue to increase, according to the vice president of the Insurance Association of Turkiye (TSB), Mr Ahmet Yasar, Middle East Insurance Review writes.

According to Mr Ahmet Yasar, this segment saw an increase in technical losses of TRY 34.9 billion (USD 922 million) in 2024, which is 1.5 times higher compared to a technical loss of TRY 13.9 billion in 2023, reported Finans Gundem.

At the same time, technical profits of the whole insurance industry in Turkiye rose by 69% in 2024, reaching TRY 103.6 billion (~EUR 2.83 billion).

It is noted that although the motor loss/premium ratio decreased to 137% in 2024 from 141% in 2023, price pressures continue due to the mandatory tariff system, the vice president of the TSB added.

“We anticipate that a more competitive environment will emerge in this area and prices will decrease with the transition to free pricing", Mr Ahmet Yasar said.

*EUR 1 = TRY 36.59 (31.12.2024)