Turkey: Casco making profit, MTPL continuing to generate losses

20 April 2015 — Mihai CRACEA
The two main motor lines in Turkey, Casco and MTPL, generated almost 67% of the local non-life insurance market in 2014 with a total premium volume of more than 10 billion TL.

Nevertheless, they are evolving in opposite ways regarding profitability, although premiums continued to grow. While for the last 2 years Casco has been steadily generating a technical profit of more than 700 million TL, MTPL produced a loss of 654 million TL in 2013 and 894 million in 2014 respectively.


"Each company has taken its own measures, however those precautions had limited effect on the total profitability. The competition is high and current results revealed the necessity to take action and analyze in companies' pricing strategy and bodily injury management more closely", Murat DINC, Claims & Reinsurance Director, Turk Nippon Sigorta said at the "Motor Insurance - the Road towards Profitability" conference in Istanbul.

Also the expected changes occurring in the European insurance sector will affect the work practices of the Turkish market, as 80% of the market is generated by the international companies.

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