Erol Esentürk, Founding Partner and CEO of Monopoli Sigorta, said that 2023 has entered an active period for the insurance industry, with distressing disasters such as earthquakes and floods in Turkey, while trying to recover from the effects of the pandemic and pricing in a high inflation environment: “The last year of the Insurance Association of Turkey According to the statistics announced by the company, it is seen that the sector grew by 131.2 percent in the first 7 months of the year. We can say that real growth in the sector was 56.4 percent when adjusted for inflation. The growth in the non-life sector is 138 percent, and the real growth in this field is actually 61 percent. The number of insured people and policies is increasing in the sector, especially in certain branches. However, only approximately 10 percent of the growth outside of life is due to the increase in the number of insured people, the rest is due to the increase in policy premium prices,” he said, and added: “The increase in the number of insured or policyholders is limited even though we had a significant earthquake in February. Especially in the case of insurance, a small portion of the country's vehicle park continues to have insurance. "It seems likely that renewal rates will decrease due to premium increases in health and motor insurance," he said.
Stating that the price increases in premiums may continue, Erol Esentürk said: "High inflation, increasing damage costs and the increase in the asset prices covered, of course, were very effective in increasing the premiums by 100-200 percent... However, in the sector, diseases/health, fire and It is observed that the number of policies and insured people increased in the natural disasters and traffic branches in the first 7 months of the year. "However, the increase in interest rates by the new Central Bank administration, which focuses on the fight against inflation, the start of contraction in domestic demand, the high policy prices and the decrease in the purchasing power of individuals due to high inflation may have a negative impact on the number of insured people and policies in many branches in the coming months," he said.
Stating that they had a successful year despite all the negative developments experienced as Monopoli Sigorta, Erol Esentürk said: “We are trying to achieve our target of growing above the sector average in 2023 and to maintain our balanced portfolio structure, which we attach great importance to and which must be accompanied by growth. "We continue to work to achieve our goals in the motor insurance and traffic branches, as well as in the health, fire, transportation and engineering branches," he added.
