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Koray Erdoğan, CEO of Ray Sigorta, stated that they were the fastest-growing company among the top 10 insurance companies in 2024. "Last year, the non-life insurance sector grew by 72%, while we achieved a growth rate of 145%. Our total premium production reached 31.4 billion. We increased our market share by 42%, rising from 2.98% to 4.25%. We achieved this growth by effectively managing costs and maintaining a balanced portfolio. Among the top 15 non-life insurance companies, we have the best net combined ratio at 86.9%. In 2025, we will continue to grow with our innovative products and services that set us apart in the sector, without compromising our sustainable growth strategy," he said.
Koray Erdoğan, CEO of Ray Sigorta, stated that throughout the year, they expanded their product portfolio with innovative approaches, implemented digital transformation-focused applications, and maintained their consistent growth performance in 2024. Highlighting that they moved up one position in the sector ranking compared to the previous year and closed 2024 in 8th place, Erdoğan said:
"We offer customer-focused innovative products, develop pioneering digital transformation applications, and strive to be a company that grows alongside our stakeholders. From this perspective, 2024 has been a year that validated our strategy. Last year, while the non-life insurance sector grew by 72%, we achieved a growth rate of 145%." Our total premium production reached 31.4 billion. We increased our market share from 2.98% to 4.25%. While the other nine companies in the top 10 experienced an average market share loss of 6% compared to the previous year, we achieved a 42% increase. We have driven this strong growth by effectively managing costs and maintaining a balanced portfolio. Among the top 15 non-life insurance companies, we have the best net combined ratio at 86.9%. In 2025, we will continue to grow by making a difference in the sector without compromising our sustainable growth strategy."
*Investment Returns Marked 2024
Erdoğan also shared his insights on the industry, emphasizing the impact of rising investment returns due to the 2024 economic conditions. "There is an enormous investment return of 62 billion, which has significantly improved the profitability outlook of the sector. However, to see the real technical profit, one must exclude the investment returns transferred from the non-technical section in financial statements. In this case, the technical loss, which was around 20 billion in Q3 2023, increased to 26 billion TL by the end of Q3 2024. While the loss ratio is decreasing, the deterioration on the technical side is concerning. Of course, the primary reason for this is operational costs.
However, regardless of the circumstances, the impact of investment returns has significantly reflected positively on balance sheets. As we enter a rate-cut cycle in 2025, more cautious steps must be taken. The sector needs to focus on sustainable growth and effectively manage its portfolios," he stated.
Erdoğan Shares 2025 Expectations
Evaluating the outlook for the auto segment, which serves as the driving force of the non-life insurance sector, Erdoğan said: "In 2024, we started the year with 72% growth in auto insurance and 112% in non-auto insurance, closing the year with 54% and 87% growth, respectively. We experienced a real contraction of 7.4% in motor insurance. This trend provides important insights into 2025. It is expected that this year will end with around 45% growth in traffic insurance and approximately 35% growth in motor insurance. A similar scenario applies to fire insurance. If the current trend continues, this segment will remain at around 25% growth, and just as we saw negative real growth in the motor segment in 2024, we might observe the same in the fire insurance segment this time."
The Impact of Interest Rates Will Be Felt in the Second Half
Regarding growth and profitability projections for 2025, Erdoğan stated: "Our year-end growth forecast for the non-life insurance sector is 36%. Since we expect the impact of declining interest rates to be felt in the second half of the year, we project a 50% increase in financial income. In parallel, we have calculated a 50% rise in operational expenses (OPEX) to shape our year-end profit estimate. In an optimistic scenario, assuming that technical results do not deteriorate further in 2025 and remain at 2024 levels, we can expect a 10% increase in profitability for the non-life insurance sector."
Time to Take Action for Istanbul
Ray Sigorta CEO Erdoğan also emphasized that the 2025 agenda of the insurance sector includes significant transformation topics such as the Supplementary Pension System (TES) and the Mandatory Disaster Insurance (ZAS). Highlighting that the increasing risk of natural disasters worldwide has made insurance one of the most critical issues, Erdoğan stressed the importance of raising awareness, particularly regarding the potential Istanbul earthquake. "It's time to take action for Istanbul without delay," said Erdoğan, adding:
"Efforts to develop the existing Turkish Catastrophe Insurance Pool (DASK) and transition to the Mandatory Disaster Insurance (ZAS) product have been ongoing for a long time. However, I don't believe these measures alone are sufficient to increase penetration. Therefore, we must manage the risks of a potential Istanbul earthquake through a combination of mandatory insurance and heightened awareness regarding homeowners' insurance. From our perspective, the most effective solution would be to transform insurance policies into tax advantages for policyholders. I believe that increasing state incentives for home and business insurance is crucial in minimizing the financial losses caused by earthquakes."
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