The Insurance Association of Turkey (TSB) has released a comprehensive position paper, outlining the sector's strategic contributions to the Turkish economy and vision for sustainable growth and offering policy recommendations for a more inclusive, accessible, and sustainable insurance ecosystem.
Roadmap for growth
The position paper, titled "State of the Insurance and Pension Sector Report", says that central to the TSB's 2030 vision, the goal is to increase total premium production to $50bn and raise the insurance penetration rate to 4.7% by the end of this decade. This growth is not merely quantitative but also essential for reducing the risk burden on public finances and providing long-term investment financing, TSB says.
Policy recommendations
The report emphasises the need for the insurance sector to position itself not only as a structure that addresses today's risks, but also as one that provides solutions for the economic and social needs of the future. Its proposals include:
Strengthening the insurance sector's capital structure
Especially in the non-life insurance sector, technical profitability must be increased to permanently strengthen the capital adequacy ratio. The most fundamental problem area in this field is the compulsory motor third-party liability branch (traffic insurance).
To improve the traffic branch, the TSB proposes:
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A "person-based policy system" to reward safe drivers with lower premiums
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Transitioning to a free tariff model to ensure fair pricing and sustainability
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Enhancing data sharing between insurance companies and public institutions like the Social Security Institution to streamline health insurance claims
Restructuring, increasing quality, and diversifying distribution channels
A key driver of sustainable growth in the insurance sector is improving distribution channels and integrating digitalization into all sales processes. Despite the strength of bancassurance and traditional agency channels, developing digital and hybrid sales models is critical for the sector's long-term competitiveness.
Introduction of new products
The TSB introduces unit-linked insurance, a new investment-funded life insurance plan designed to bridge the gap between savings and protection.
Further innovations include:
Promoting retirement funding
The document also underscores the strategic importance of the Supplementary Pension System (TES), which aims to increase household savings and maintain living standards during retirement.
“If these reform proposals are implemented," the TSB said, "insurance will become the permanent insurance of Turkey's macroeconomic resilience".