MILLIRE ENG2024

minimum wage, vehicle prices, and spare part costs, continued to influence premiums in this branch, their effect was less pronounced than in previous periods. The Land Vehicles branch recorded a nominal growth rate of 33.7% in 2024; however, in real terms, it was -7.4%, and the share of the branch in total Non-Life premium production was recorded as 15.2%. Growth was observed in Health insurance premiums in 2024, due to the heightened health awareness following the pandemic, which led to greater interest in complementary health insurance, the growing proportion of health insurance within employee benefit packages, continued expansion of group policies, and elevated healthcare expenditures. In addition, the reflection of high medical inflation on policy pricing played a significant role in this growth. Premiums in this branch increased by 93% in 2024, corresponding to 33.7% real growth, and the share of the branch in total Non-Life premium production rose from 16.5% in the previous year to 18.5%. Driven by a nominal growth of 86.7% and a real growth of 29.3% in 2024, the share of the Fire and Natural Disasters branch within Non-Life premiums increased from 15.3% to 16.6%. Following the earthquake disaster, insurance pricing once again shifted its focus toward earthquake risk, which became a key determinant in policy pricing. In addition to the increase in policy rates, inflation and the rise in insured values played a significant role in the growth of this branch. With the amendment to the Tariff and Instruction regarding Optional Earthquake and Volcanic Eruption Coverage, prices to be applied according to earthquake zone and building type were increased by 25% as of 1 January 2024. Furthermore, the threshold for applying the free tariff was increased from TL 2 billion to TL 2.5 billion as of 1 July 2024, and other insured values in the tariff were similarly adjusted upward. This regulatory update contributed positively to earthquake premium levels and, in turn, supported both premium production and technical profitability in commercial and industrial risks within the branch. Within the General Losses branch, which comprises Engineering, Agricultural, Theft, and Glass Breakage insurance, 93.8% of the premium income is generated by Engineering and Agricultural insurance. Engineering insurance recorded 71.8% nominal and 19% real growth, increasing its share within General Losses from 48.5% to 49.9%. Given that they are mostly arranged in foreign currencies, the Machinery Breakdown and Electronic Equipment branches are more exposed to exchange rate fluctuations; however, this impact experienced a slowdown in 2024 as a result of the stable trajectory of exchange rates. When analyzed in terms of operational period and project insurances, a decline in renewable energy investments was observed compared to previous years. During this period marked by the absence of major projects, the housing demand that emerged following the earthquake, driven Turkish Insurance Market 54 MİLLİ RE