Page 18 - Turkinsurance Digital Magazine

18 cover story

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The second day of the 3

International Insurance Summit

focused on the ‘Protection Gap in

Catastrophic Risks’

from the sector, and a growth expectation of 34% is projected.

2. The Role of the Insurance Sector: The insurance
sector holds a significant place in Turkey, as it does in global
practice, because it provides financial protection to individuals
and businesses. The point we need to focus on is risk reduction
and management. Accurate analysis of risks and the actions to be
taken in response are of great importance. Up until now, we have
taken a reactive approach, meaning we were limited to compen-
sating and making payments after the risk materialized. Howev-
er, after the earthquake, it became clear that we need to adopt
a proactive stance and focus on risk prevention. As a sector that
builds the future, the insurance industry ensures the control of
risks and offers great benefits through risk-sharing. In addition,
it provides financial stability and security.
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The second day of the 3 International Insurance Summit, held
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as part of the 13 Insurance Week organized by the Association 3. Savings and Supplemental Pension Insurance:
of Insurance Practitioners, IUC, and Middle East Insurance Re- Recently, regulatory authorities have been taking steps to in-
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view, featured significant panels. The opening speeches of the 3 crease savings in their economic policies. Structures that support
International Insurance Summit, held on October 2 at Sheraton the non-bank financial sector are being developed. An increase is
Grand, were delivered by Fahri Altıngöz and Özgür Obalı. On the also being observed in supplemental pension insurance. We are
second day, prominent figures once again gathered to discuss the moving toward a system where employers themselves are includ-
present and future of the insurance industry.
ed in the model alongside the mandatory component, which is a
crucial development considering the aging population. Addition-
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On the second day of the 3 International Insurance Summit, ally, special attention should be paid to incorporating businesses
organized by the Insurance Association of Turkey under the with religious sensitivities into the takaful system.
theme “Reducing the Protection Gap: Turkey’s Journey to Re-
silience and Sustainability,” domestic and international experts
discussed increasing resilience against earthquakes and closing 4. Protection Gaps and Penetration Rate: Looking
the related protection gaps. at protection gaps worldwide, there is a $1 trillion gap in pen-
sions, $0.9 trillion in cybersecurity, and $0.8 trillion in health-
Here are some highlights from the speech of Özgür Obalı, Secre- care. We are in a better position than the global average in pen-
tary General of the Insurance Association of Turkey, one of the sions. In Turkey, cybersecurity remains a luxury service in terms
opening speakers: of the protection gap. On the healthcare side, due to the state’s
“I would like to share a few points regarding the current state significant responsibility, there is not much left for the private
of the insurance market. Yesterday, we talked about insurance sector to handle. Globally, our penetration rate is 7%, well be-
protection gaps, and now I want to revisit this topic and touch on low the world average. However, significant progress has been
the current situation. I will proceed with five points: made in recent years, especially from 2022 to 2023. In non-life
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premium production, we rose from 27 place in the world in
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1. Competitive Market and Premium Produc- 2022 to 20 place in 2023. In the EMEA region, we moved
from 4th place to 1st.
tion: There are a total of 72 insurance companies, making the
Turkish market quite competitive. There is a $14 billion GWP, 5. Growth Potential and Goals of the Sector: The
and total premium production reached $34 million as of August
2024. There are a total of 16 million participants. Looking at growth potential of the sector is quite high. The first goal is to
the last decade, the last two years have been particularly success- raise awareness. The second goal is to review the structures with-
ful in attracting new participants. As Mr. Uğur mentioned in his in the sector and bring all stakeholders together. The third goal
speech yesterday, 20% of the total gross domestic product comes is to establish more effective relationships with public authorities