“As of today, we believe there is no longer a supply problem in traffic insurance. Of course, this isn't just a matter of a few companies; the increase in the number of players entering the market in recent months is encouraging”, Mr Ahmet Yasar said. At the same time, he added that problems in the traffic insurance branch have not completely gone away, particularly as cost challenges persist.
According to him, free tariffs are one of the most talked-about topics in the sector. Insurers are struggling due to the lack of adequate control over costs. "Our primary goal is to manage costs and avoid losses", Mr Ahmet Yasar explained.
The president of Maher Holding Insurance Group emphasized that new products have been introduced to increase insurance coverage in the sector. "The insurance rate in comprehensive insurance is currently around 25%. We're working to increase this rate by developing new products”, he said.
He noted that comprehensive motor insurance premiums have recently dropped below traffic premiums, highlighting the impact of competition on this issue. "In the past, comprehensive insurance premiums were two or three times the traffic premium. Now, the opposite is true—comprehensive insurance premiums can sometimes be half the traffic premiums", Mr Ahmet Yasar said. He added that competition, including the desire of new entrants to capture market share, plays a significant role in this development.
“We are going through a period in which we need to be cautious on the comprehensive insurance side. Any potential cost increases in the coming period should be factored into pricing", he said.
It is noted that traffic insurance is the largest branch in Turkiye, with premiums generated of TRY 171 billion (USD 4.1 billion) in the first seven months of this year. This represents 25.5% of the insurance market’s total premiums over the period, the source writes.
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