Insurance

Think of a product: You have to sell it, your customers come from that product the most.

But the more you sell, the more you make a loss. In the insurance industry, this is called: Traffic Insurance.

The insurance sector  lost 85 billion TL ≈ in traffic insurance in 2025.

Despite this, the profit of the sector increased…? Let’s look at the story with data:

Source: Insurance Association of Turkey Periodic Report (2025 Data)

Traffic Insurance General View:

1. “Two out of every ten vehicles on the roads do NOT have traffic insurance!”
2. The number of vehicles that are required to have Traffic Insurance within the law in our country: ≈ 31 Million
3. Number of traffic insurance policies as of the end of 2025: ≈ 26 Million.

General View of Insurance Companies:

✅ Insurance profit increased by 90% to 66.5 billion TL (35 billion66.5 billion). However, there are two very interesting details in the details of this:

1️⃣ Investment Income*Support: Investment income increased by 73% to 220 billion TL.                    

2️⃣ Life Branch Support: 81% of this profit comes from the life branch.

*Investment income: The income obtained by the company from high interest using various arguments. (Example: Government bonds, treasury bills, deposits, foreign currency, etc.)

CONCLUSION:

Gross Profit: “The sector wrote a loss of 65 billion TL” as the value excluding investment income!

📌Analysis of the Agency:

VERY IMPORTANT ! ?️

At a time when interest rates are starting to fall, if investment income cannot provide the same amount of support, it seems that the “sustainability of traffic insurance” will be discussed more.

🆘Therefore, it would not be surprising if some companies adopt the following strategy in the coming period:

➡️ Grow
➡️ in traffic  Win
➡️ customers Refer them to  motor insurance, health and life products

However, in order for this strategy to be successful;

• Strong capital structure• Advanced data analytics• Successful cross-selling capability is required.

📍So what should the consumer do?

My priorities when purchasing traffic insurance are in ORDER of IMPORTANCE:

1️⃣ Claims payment and claims management performance

2️⃣ The company’s financial strength and track record in the industry

3️⃣ Agency quality and support in case of damage

4️⃣ Price

Because the price is at the end; the real value in traffic insurance is revealed on the day you experience damage, not “the day you buy the policy”.

The top 3 companies with the highest compensation payments in the traffic branch in 2025:

1. QUCK INSURANCE
2. TURKEY INSURANCE
3. RAY INSURANCE

⛔️FINAL WORD:

Today, traffic insurance is the biggest product of the sector.

However, the figures show that the profit of the sector is no longer from traffic; It comes from life insurance, investment income and cross-selling. Perhaps traffic insurance is no longer an insurance product, but a customer acquisition cost.