Insurers should be aware that maintaining low tariffs for MTPL is very risky in the long run
“The Turkish insurance market is not doing so well as the country’s economy as a whole, although it is usually expected that the growth dynamics should be similar,” Muzaffer AKTAS, Managing Director with WILLIS Re told XPRIMM.TV at Istanbul. “Yet, the market’s perspectives are huge, which is why over 70% of the share capital of Turkish insurers is now foreign-owned. There is a tremendous growth field for the foreign, European giants which have already exhausted the growth resources in their own markets,” explained AKTAS.
He also pointed out that, although beneficial in terms of market development, the strong interest of the foreign players in the Turkish markets has also its shortcomings, as it has created a sharp competition. “Competition is good in many respects, but because of the harsh fight for the market share, things have been pushed a little too far during and the market’s stability can be affected,” said WILLIS Re’s representative.
Speaking about the motor insurance market, Muzaffer AKTAS told us that Turkish insurers are also confronted with the challenging issue of the bodily injuries claims. “Local insurers need to pay attention to this issue because once the liability limits are going up, this type of claims is becoming more and more interesting for the specialized lawyers and the volume of claims goes up. Insurers should be aware that if they don’t increase their tariffs, they will be in big trouble,” he said. Also, “emerging markets need to be prepared for the whiplash claims. They are not yet significant in the region, but it is only a matter of time before they will really become a problem.”
Watch the video footage in order to find out additional details concerning the Croatian insurance market’s current status and future perspectives.