Page 19 - Turkinsurance Digital Magazine

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and regulatory bodies. Officials in parliament do not fully under-
stand the insurance sector, so we need to develop better dialogue
with them. The fourth goal is to understand customers’ needs
and increase participation. It’s no longer just about selling in-
surance, but analyzing what society needs and offering products
accordingly.

The pension and insurance sector in Turkey has proven its resil-
ience during challenging times. Now it’s time for a breakthrough.
The Insurance Association of Turkey (TSB) is determined to
contribute to society and the economy with new goals. The insur-
ance sector will be a significant force for both our country and
other countries in the region.”

Emine Feray Sezgin: Emphasis on

Green Transformation in the Sector

Green Transformation is a system aimed at sustainability and focus-
es 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 high-
lights 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 pro-
vided, retirees will not be able to maintain their living standards.

The global health protection gap is estimated to be between $800
The next speaker at the summit was Emine Feray Sezgin, Vice million and $4 trillion. Insurance must enhance individuals’ resil-
President of the Insurance and Private Pension Regulation and Su- ience by providing additional protection; otherwise, individuals may
pervision Agency (SEDDK). Here are some highlights from Sezgin’s have to divert their savings toward healthcare expenses.
speech:
As seen, green transformation, digital transformation, and demo-
The insurance sector, which grew by 105% compared to the previ- graphic transformation can pose significant risks if necessary pro-
ous year, reached a level of 483 billion TL and achieved significant tections are not provided. The insurance sector plays a critical role
growth by the third quarter of 2024. Private pension funds exceeded in addressing the protection gaps that arise from these transforma-
1 trillion TL, with a total contribution of 1.5 trillion TL. The sec- tions, reducing risks, and financing resource needs.
tor, with its wide ecosystem of agents, brokers, assistance compa-
nies, and other stakeholders, provides employment to approximately A sustainable insurance and private pension sector is essential to
200,000 people. respond to these transformations. As an organization, we work in
collaboration with industry stakeholders on insurance and individual
The increasing extreme weather events and more complex risks pension products, keeping the public interest in mind.
have led to significant protection gaps in the sector. In the coming
years, these risks and their frequencies are expected to increase. With increasing fund amounts each day, the Individual Retirement
The global protection gap against disasters rose from $126 billion System (BES) is becoming more attractive. We are also working on
between 1990-99 to $219 billion in the 2010s. The role of the in- the pricing of traffic insurance and the production of the Individual
surance sector is to mitigate the socioeconomic impacts of these Retirement System (BES). Additionally, we are nearing the com-
disasters and raise awareness about behavior change. Other risks we pletion of our efforts to implement mandatory disaster insurance, a
face include financial devastation, increased non-compliance risk, comprehensive product aimed at alleviating the public burden from
and risks associated with green transformation. potential damages caused by natural disasters.