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The next speaker at the summit was Emine Feray Sezgin, Vice President of the Insurance and Private Pension Regulation and Supervision Agency (SEDDK). Here are some highlights from Sezgin’s speech:
The insurance sector, which grew by 105% compared to the previous year, reached a level of 483 billion TL and achieved significant growth by the third quarter of 2024. Private pension funds exceeded 1 trillion TL, with a total contribution of 1.5 trillion TL. The sector, with its wide ecosystem of agents, brokers, assistance companies, and other stakeholders, provides employment to approximately 200,000 people.
The increasing extreme weather events and more complex risks have led to significant protection gaps in the sector. In the coming years, these risks and their frequencies are expected to increase. The global protection gap against disasters rose from $126 billion between 1990-99 to $219 billion in the 2010s. The role of the insurance sector is to mitigate the socioeconomic impacts of these disasters and raise awareness about behavior change. Other risks we face include financial devastation, increased non-compliance risk, and risks associated with green transformation.
Green Transformation is a system aimed at sustainability and focuses on reducing environmental risks. Additionally, it is important to emphasize the need to provide businesses with financial resilience against cyberattacks and enhance mobility.
Demographic Transformation brings with it challenges such as low global birth rates and increasing life expectancy. As the burden on pensions increases, the working population decreases, and the need for care among the aging population grows. This situation highlights the need for greater product diversity in private pensions and life insurance. Citizens' increasing life expectancy is raising the need for regular and supplementary income. If these savings are not provided, retirees will not be able to maintain their living standards.
The global health protection gap is estimated to be between $800 million and $4 trillion. Insurance must enhance individuals' resilience by providing additional protection; otherwise, individuals may have to divert their savings toward healthcare expenses.
As seen, green transformation, digital transformation, and demographic transformation can pose significant risks if necessary protections are not provided. The insurance sector plays a critical role in addressing the protection gaps that arise from these transformations, reducing risks, and financing resource needs.
A sustainable insurance and private pension sector is essential to respond to these transformations. As an organization, we work in collaboration with industry stakeholders on insurance and individual pension products, keeping the public interest in mind.
With increasing fund amounts each day, the Individual Retirement System (BES) is becoming more attractive. We are also working on the pricing of traffic insurance and the production of the Individual Retirement System (BES). Additionally, we are nearing the completion of our efforts to implement mandatory disaster insurance, a comprehensive product aimed at alleviating the public burden from potential damages caused by natural disasters.
The insurance sector is not just an institution that transfers risks. The rapid transformation in the sector will accelerate even further in the future. |
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