Method of Protecting the Insured from Inflation

The increase in inflation rates creates a lot of trouble for the insured and the policyholder in the sector.
In the statement made by Monopoli Insurance CEO Erol Esentürk, it was stated that it is very important to protect the insured's values against high inflation by both insurance companies and the insured.
Esentürk said in his statement that although insurance policies contain clauses that protect the rights of the insured and insurance companies of both parties, it may become impossible to replace the lost property caused by economic changes (due to increased inflation). For this reason, he stated that in this uncertain period in the economic environment, making policies with inflation clauses will protect the insured and the insurance company.
Policies with inflation clauses are issued to ensure that the insurance value maintains its value in the face of a possible increase in inflation. With the policies issued with clauses, the contract is made by adding the clauses that include the increase in the value of the product insured during the insurance period. For each renewed year, the insurance amount can be increased at a rate determined by agreement between the parties, with an adjustment clause. In the case of damage, the insurance amount can be increased at the annual rate of increase determined by taking into account the date of the damage.
In his statements, Erol Esentürk proposes to issue foreign currency policies in the sector. Because, even if the Turkish Lira policy is issued with inflation, it remains unprotected against foreign exchange inflation. For this reason, Erol Esentürk states that as insurance companies, they offer foreign currency policies. It has been stated that to keep the insurance costs up-to-date, it will not be necessary to increase the cost of the motor insurance policies independently of the workplace and housing policies.