The Insurance Association of Turkey (TSB) has outlined its expectations for 2025 for the industry.
The highlights are:
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More CAT (natural disaster) protection will be needed in 2025.
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An additional $2-3bn of reinsurance protection will be needed in 2025.
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As more urban transformation projects are covered by Building Completion Insurance and housing sales turn stable, insurance penetration in this branch is expected to increase in the medium and long term.
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Suggestions for the implementation of Building Inspection Insurance to ensure construction quality are shared with public authorities.
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The work carried out by the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) to strengthen financial resilience and the capitalisation of insurers aims to better reflect the real risks faced by insurers and ensure that capital adequacy calculations are more accurate.
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While urban transformation continues throughout the country, emphasis is being placed on measures taken to prepare for a possible Marmara earthquake, especially in Istanbul and its surrounding areas.
These expectations are published in an information booklet published by the TSB to explain the steps taken by the Turkish insurance industry after the February 2023 Kahramanmaras earthquakes. The booklet was prepared for the Baden Baden Reinsurance Meeting which took place in Germany on 20-24 October. Reinsurers and insurers discuss contract renewals at the Meeting. TSB sent a delegation to Baden Baden for the second consecutive year this year.