MILLIRE ENG2024

The insurance industry persists in demonstrating a consistent growth trajectory. The impact of climate change, through the escalation in frequency and severity of natural disasters, continues to disrupt not only environmental and social balances but also poses serious challenges for the insurance industry in particular. Insurance and reinsurance companies are compelled to make higher claims payments each year due to the growing impact of natural disasters. This situation, while heightening the sector’s vulnerability to volatile environment and inflationary pressures, is concurrently escalating insurance costs, which is evident in the rising premiums and market penetration, attributed to the ongoing trend of shrinking reinsurance capacity. In 2024, insured disaster losses continued to surpass the historical average, reaching USD 145 billion. Two major Atlantic hurricanes, Helene and Milton, which severely impacted the United States and caused extensive losses, stood out as the year’s most significant disasters, each generating more than USD 10 billion in sector losses. In 2024, despite a relative improvement in the global protection gap, it was observed that extreme weather events were the primary cause of losses, with only 40% of the total economic losses being covered by the insurance industry. Our sector has demonstrated sustained stability in real growth by building on the performance achieved in 2023, effectively addressing the challenges posed by the earthquake, and enhancing the claims payment process through a diverse product range that aligns with market expectations and a successful strategy to increase penetration in 2024. In 2024, the sector experienced a significant increase in premium production, rising by 72.5% (19.5% in real terms) to reach TL 838.5 billion. The Non-Life branches accounted for approximately 88% of this total, with TL 738.5 billion in premiums. While the Land Vehicles Liability branch continued to be the largest contributor to total premium production, the growth rate of the Land Vehicles branch lost momentum. Meanwhile, the Health Insurance branch recorded rapid growth and ascended to second place in premium production rankings. These were followed by Fire and Natural Disaster insurance. As for the Life branch, premium production reached TL 99.9 billion, corresponding to approximately 12% of total premiums. Our sector has demonstrated sustained stability in real growth by building on the performance achieved in 2023, effectively addressing the challenges posed by the earthquake, and enhancing the claims payment process through a diverse product range that aligns with market expectations and a successful strategy to increase penetration in 2024. Chairperson’s Message 12 MİLLİ RE