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MTPL Is It Time For Profits
MTPL Is It Time For Profits
2 towerswatson.com
2009
11,604,457
10,757,334
2010
12,643,507
11,652,461
2011
14,226,019
13,099,465
2012
15,031,849
13,862,944
The
4 towerswatson.com
CMCs
Changes in regulations
Changes in regulations may sometimes affect the
claims reserves retrospectively. A clear example
was the treatment of pilot cases. Claimants have
to pay a tax based on the compensation amount
they request from the insurance company. In some
cases, they request a very small benefit amount
in order to pay less tax, but increase the amount
when they feel confident that they will win the
case. The big jump in the claims reserves makes
the reserves volatile and the IBNR difficult to
estimate accurately.
The
Percentage
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2009
2010
2011
2012
2013
Traffic MTPL
Percentage
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2009
2010
2011
2012
2013
Traffic MTPL
6 towerswatson.com
Billions TL
43%
1.2
26%
1.0
0.8
0.6
0.4
0.2
0.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2009
2010
2011
2012
2013
GWP
Figure 05. Quarterly average premium
400
350
34%
300
39%
10%
250
9%
200
150
100
50
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2009
2010
2011
2012
2013
Traffic MTPL
**The numbers show the annual increase between 2010Q4 to 2011Q4 and from 2011Q4 to 2012Q4.
Whats next?
The past two years have been
turbulent for companies in
the Turkish MTPL market:
significant changes to the
claims environment, reserving
environment and competitive
environment have meant
companies have needed to
monitor, analyse and react quickly
in terms of pricing, claims
management and also strategy.
10 towerswatson.com
Further information
For further information, please contact your
Towers Watson consultant, or
Chris Halliday
+90 212 337 21 04
chris.halliday@towerswatson.com
towerswatson.com