The Insurance Association of Türkiye (TSB) is coordinating with all stakeholders, including the government, to forge a plan with a new vision and fresh targets for the coming decades with the main goal of raising the penetration rate.
Mr Ugur Gulen, who is the chairman of the TSB and also an executive member of Aksigorta, said this in his opening address at the 3rd International Insurance Summit & Türkiye Rendezvous and XVI International Istanbul Insurance Conference, which kicked off in Istanbul yesterday. During the conference yesterday, Mr Gulen and other speakers discussed the best means to deal with several of the emerging risks such as the protection gap, climate risks and demographic changes.
Mr Gulen said that the association is looking at means such as implementing various lines of compulsory insurance and finding better means to address motor insurance pricing in a way that would reflect the risks insurers write. “We have discussed with the authorities and other stakeholders these issues to find proper solutions,” he said.
The insurance industry has an essential role to play in bridging the protection gap. In Turkiye, the earthquake that hit the southern parts of the country last year has shown a huge gap that needs to be addressed, stressed Mr Gulen. The total losses caused by the 2023 Kahramanmaras earthquake reached to $106bn while insured losses stood at $6bn.
Megatrends
Mr Gulen also named some of the major megatrends affecting the insurance industry, including geopolitical risks and political conflicts, which have led to notable shifts and changes in the macroeconomic environment. Technological changes are also among the major trends as they affect human lives. Also on the list is Nat CAT which will continue to affect the insurance industry in the coming decades, he said.
Demographic change is another trend to watch for, he said, as population aging continues to be a global trend. He said, “This is a great opportunity for our industry. Pension and health protection gaps are two important elements for governments to look after. The risk is high in this area.” Mr Gulen said that as life expectancy increases, the demand is rising too for healthcare solutions.
Organised by Middle East Insurance Review (MEIR), and co-hosted by TSB with the support of IUC Group, Sigorta Tatbikatçilari Dernegi (Insurance Practitioners' Association), and Invest in Turkey, this year’s gathering attracted over 500 delegates from 22 countries. The theme of the Summit and Rendezvous is "Narrowing the Protection Gap: Türkiye’s Journey to Resilience and Sustainability".