Page 14 - Turkinsurance Digital Magazine

14 interview

wars simultaneously, we are put through the hoop as insurers in In addition, our sector accepts it as its responsibility to serve eco-
this process. Rising inflation, developments in the exchange rate, nomic sustainability. In this direction, it provides 32 times the guar-
increased labor, spare parts, and vehicle prices, and the increase in antee of GDP. As the guide organization of the sector, TSB, we are
medical inflation negatively affected our sector in this period. proud of our contribution to this. Of course, it is critically important
that we maintain our financial and financial strength, in short, our
While, with the easing of the effects of the pandemic, the year 2022 profitability on this path. If we continue our success in this area, we
is expected to be a year in which wounds are healed in the economic do not see any obstacles to achieving even better results and more
sense, the Russian invasion of Ukraine, like seismic waves emanat- significant economic benefits.
ing from the epicenter of an earthquake, spread through the glob-
al economies to commodity markets, trade, and financial markets, There are solid reasons why our insurance sector is of critical value
causing extremely negative economic and social consequences. in the economic and financial system. To briefly summarize;

In summary, in this period, when risks are diversifying and increas- - The insurance sector always provides financial support to the in-
ing, ‘risk management has entered a more critical process than ever sured in case of damage and helps to reduce the dangers in economic
before. We are working shoulder to shoulder with all our stakehold- and social life.
ers in the sector, and we are making great efforts to overcome this
process with minor damage. - As part of the financial system, insurance helps people increase
their savings and make the best use of them while providing resourc-
“While the number of participants under es to the financial system.
18 who completed their first year at BES - Insurance offers the management of the risks of individuals and
exceeded 436 thousand, the size of the companies while replacing uncertain losses with certain costs, there-
fund was recorded as 1.6 billion liras by reducing the total stake in the economy.
together with the state contribution.” - Insurance provides support to the community through health insur-
ance. In this context, the insurance sector contributes to the contin-
In July, our insurance sector premium production increased by 96% uation of public health and alleviates the state’s burden in this area.
compared to the same period of the previous year to 107.3 billion The insurance sector also plays a vital role in maintaining economic
liras. Non-life premium production increased by 101.2% to 91.8 and financial stability;
billion liras, and life premium production increased by 69.1% to
15.4 billion liras. - The insurance industry, like other financial service providers, ef-
fectively manages risks against short-term liquidity crises. Insurance
At what level does the sector’s development contribute to the companies manage the risks they may be exposed to by distributing
national economy? or diversifying the risk transferred through reinsurance agreements.

As I have just stated, insurance is the sector that provides the most - Insurance is a social policy tool. For example, the compensation
significant added value to the Turkish economy after banking. We of damage that will occur as a result of work accidents and natural
are taking steps to understand and increase this contribution, to disasters, such as damage after payments, to establish the continuity
develop and disseminate new products for the changing needs of of the economic life of social benefits by providing crucial financial
our policyholders, and, of course, to increase insurance rates. We stability.
are happy to see the results of our concrete studies, that is, the con-
tribution of our sector to our national economy, in the top policy - Insurance supports the management of risks of enterprises by en-
documents of our state. suring supply chains, which are becoming increasingly vulnerable to
more complex technological components.
The role assigned to our sector is vital, especially for the growth of
the non-banking financial sector. The contribution of the value we - Instead of setting aside a relatively large amount of money for un-
provide to our Turkey is not limited only to the funds we create; we expected losses, individuals and businesses can purchase insurance
serve to continue life with a sustainable assurance with the risks we at a reasonable premium, allocating more working capital for their
undertake in all areas of life and the guarantees we provide. We activities and producing more goods and services, generating higher
know the assets of our country, institutions, companies, and citi- earnings.
zens, and more importantly, we see the value of their future and
secure them. A harmful air has been blowing in the traffic branch for a while.
How do you interpret the situation in this area? How do you
As TSB, the study “Economic Impact Analysis of the Insurance Sec- convey the Union's suggestions to the sector on this issue?
tor in Turkey,” which we have prepared with Boğaziçi University,
has shown us that: If the penetration rate of the Turkish insurance Traffic insurance is a branch that makes losses in almost every
sector increases from the current rate of 2.2% to the level of 4.5% country. Unlike us, it can be maintained at a sustainable level with
observed in equivalent countries, we can improve the additional con- the profitability created in other units in other countries.
tribution of our industry to the national income of our country up to
421 billion TL with indirect donations. This additional contribution The traffic branch negatively affects the profitability of the entire
corresponds to a 7.5% growth in national income. insurance sector due to its predominant share in the industry. For