...Bodily Injury Claims Rising: Fitch Ratings believes that rising bodily injury (BI) claims could pose a serious threat to the Turkish non-life insurance sector's profitability and solvency. BI claims' frequency and severity have increased significantly in recent years. The agency believes that insurers and the regulator collectively need to respond but a solution is expected to take time. Volatile Profitability: Fitch believes that in 2015 non-life insurance is likely to be loss-making again due to a significant increase in motor reserves across the industry. In 1H15, the non-life insurance technical loss was TRY216m with a combined ratio of 110%. The life insurance and pensions sector's profitability was stable and supported the overall profits of the insurance sector. Overhaul of Reserving Practice: Since 2014, insurers have been free to choose the methods for setting incurred-but-not-reported (IBNR) reserves, while previously reserve calculation methods were prescribed by the regulator....
