Premium production of the insurance sector exceeded 1 trillion liras in 9 months Insurance sector

According to the information compiled from the data of the Insurance Association of Turkey, the total premium production of the insurance sector in the January-September period of the year increased by 28 percent compared to the same period of the previous year and reached 1 trillion 97 billion 137.4 million lira.

Of the total premium production, 917 billion 814.6 million lira was made up of non-life insurance, and 179 billion 322.8 million lira was made up of life insurance. While the premium production of non-life insurance increased by 25.5 percent on an annual basis, its share in total production decreased from 85.4 percent to 83.7 percent. In life insurance, premium production increased by 43 percent and their share in total production increased from 14.6 percent to 16.3 percent.

Despite the nominal increase in premium production, the sector contracted in real terms when adjusted for inflation. Total premium production decreased by 1.3 percent in real terms. While non-life insurance decreased by 3.3 percent in real terms, life insurance grew by 10.2 percent.

In non-life insurance, the highest premium production in the January-September period was in the motor vehicle liability branch, which includes compulsory traffic, motor vehicle voluntary liability and green card insurance. This branch constituted 28.5 percent of the total premium production of non-life insurance with a production of 261 billion 932.6 million lira. In compulsory traffic insurance, which is the largest sub-item of the branch, premiums worth 240 billion 120.5 million lira were produced.

The land vehicles liability branch was followed by illness and health with a production of 202 billion 847.1 million lira and a share of 22.1 percent. Within the total premium production, fire and natural disasters had a share of 15.7 percent with 143 billion 792.4 million liras, automobile insurance with 13.5 percent with 124 billion 178.3 million liras, and general losses with 11.3 percent with 104 billion 128.2 million liras.

When the premium increase rates on a branch basis are examined, the watercraft liability branch increased by 55.5 percent, general losses by 41.7 percent, financial losses by 38.6 percent, illness-health by 37.4 percent and credit branch by 31.1 percent. On the other hand, among the main branches, there was a 28.3 percent decline only in the legal protection branch.

On the participation insurance side of the sector, the total premium production in the said 9 months increased by 44.7 percent compared to the same period of the previous year and reached 68 billion 252.5 million liras. Thus, the share of participation insurance in total insurance premium production was recorded as 6.2 percent.

Of the total participation premium production, 65 billion 358.5 million lira was made up of non-life insurance with a share of 95.8 percent, and 2 billion 894 million lira was made up of life insurance with a share of 4.2 percent. While non-life participation premium production increased by 44.6 percent on an annual basis, life participation premium production increased by 47.6 percent.

Source: TRT Haber Ekonomi RSS (Open Press / Translated Full Text)