The three markets recorded somehow divergent trends in GWP evolution terms: while Cyprus saw an 1.25% decline in GWP in the first quarter - a trend that most likely continued in Q2 too -, Greece has posted a 4% increase in GWP. Turkey saw a double digit positive growth rate in national currency, but given the strong devaluation of its national currency, the trend calculated for the results denominated in Euro resulted in a 3.4% y-o-y decrease.
However, the Turkish market continues to account for almost 68% of the premiums written in the SEE, while Greece has increased its share by about 1 percentage point. In fact, Turkey gets most of the attention in this group not only because of its market size, but also because while for many years already it has been considered a growth reservoir, nowadays the market is going through a less comfortable position. The currency devaluation, together with the high inflation rate are the main drivers of most challenges, as the high pressure on the motor insurers' profitability. The regulatory volatility is another important factor of discomfort. Yet, despite these difficulties the market's attractivity in the long run remains intact.
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