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        Insurance Association of Türkiye (TSB) President Uğur Gülen: “We are building a
        steadily growing and financially strong insurance ecosystem”



                                                              Gülen  further  noted  that  with  the  diminishing  impact  of
                                                              inflation on the sector, real growth figures will become
                                                              evident this year, stating: “Over the past 20 years, the
                                                              insurance sector has grown by 10-20% above inflation. We
                                                              closed 2024 with 838 billion TL in premium production. For
                                                              2025, we anticipate growth in the range of **35-40%. With
                                                              price stability achieved, we will now be able to see inflation-
                                                              adjusted real growth figures.”

                                                              Ahmet  Yaşar:  “Losses  in  Traffic  Insurance  Continue  to
                                                              Rise”

                                                              Vice President Ahmet Yaşar highlighted the cost pressures in
        Insurance  Association  of  Türkiye  (TSB)  President  Uğur  traffic insurance, stating: “Losses in traffic insurance continue
        Gülen stated that the insurance sector is moving towards its  to increase. In 2023, the branch reported a technical loss of
        goals with strong steps, saying: “Our sector, with total assets  13.9 billion TL, which rose to 34.9 billion TL by the end of
        exceeding 2.2 trillion TL, continues to strengthen its equity  2024. Although the claims-to-premium ratio decreased from
        structure, enhancing its financial resilience.” .     141% to 137%, price pressure persists due to the mandatory
                                                              tariff system. We anticipate that transitioning to a liberalized
        The  Insurance  Association  of  Türkiye  (TSB)  Board  of  tariff system** will create a more competitive environment in
        Directors  gathered  with members of  the press  for an iftar  this field and lead to lower prices.”
        event. The meeting, led by President Uğur Gülen, was attended
        by  Vice  Presidents  Ahmet  Yaşar  and  Taylan  Türkölmez,  Emphasizing that strategies to enhance the financial
        Board  Members  Neslihan  Neciboğlu  and  Erol  Öztürkoğlu,  resilience  of  the  insurance  sector  will  continue,  Yaşar
        and Secretary General Özgür Obalı. At the gathering where  stated: “Maintaining capital adequacy, increasing insurance
        the 2024 technical results of the insurance and private  penetration, and improving operational efficiency will be
        pension sectors and expectations for 2025 were shared, the  among  the  top  priorities  in  the  coming  period.  For  2025,
        “Earthquake-Focused Insurance Reform Agenda,” developed  our strategic initiatives include cost management, regulatory
        by the Association in response to increased expectations from  compliance, and reporting processes, as well as adaptation
        the insurance sector following the February 6 earthquakes,  to the new Solvency Capital Adequacy Model and TFRS 17
        was also explained in detail.                         Insurance Contracts Standard.”

        Insurance  Association  of  Türkiye  (TSB)  President  Uğur  Neslihan Neciboğlu: “The Sector Will Focus on Financial
        Gülen stated that 2024 stood out as a year of strong growth  Sustainability”
        and  financial  resilience  for  the  insurance  sector.  Gülen
        said: “The insurance sector has continued to strengthen its  Insurance  Association  of  Türkiye  (TSB)  Board  Member
        equity structure, enhancing its financial resilience. In 2024,  Neslihan  Neciboğlu  highlighted  the  sector’s  technical
        equity  capital  grew  by  74%,  reaching  265.3  billion  TL.  profitability, stating: “The technical profitability of the
        This development has also reinforced insurance companies’  insurance sector increased by 69% in 2024, reaching 103.6
        capacity  to  meet  their  long-term  liabilities.  One  of  the  billion TL. Of this profit, 84 billion TL came from non-life
        most promising developments is the increase in the number  branches, while 19.6 billion TL was generated from life and
        of  policies  in  key  branches  such  as  motor,  health,  and  fire  pension branches. Meanwhile, net profit for the period rose
        insurance.”                                           by 57%, reaching 103.9 billion TL. Looking at profitability
                                                              ratios:Return on assets (ROA) was 12%, Return on equity
        Emphasizing that the sector continues to strengthen its  (ROE) was 50%, Premium-to-technical profit ratio stood at
        balance  sheet,  Gülen  stated:”In  2024,  the  total  assets  of  12%.”
        our  insurance  sector  grew  by  61%,  reaching  2.29  trillion
        TL.  This  growth  has  strengthened  the  financial  stability  of  Discussing  expectations  for  2025,  Neciboğlu  emphasized:
        insurance companies and established a crucial foundation for  “For 2025, reviewing pricing mechanisms, strengthening cost
        sustainable expansion.”                               management strategies, and optimizing investment returns
                                                              will be of critical importance. With digital transformation,
        Highlighting that the sector is taking steps to enhance capital  innovative  product  development,  and  customer-focused
        adequacy,  Gülen  added:  “We  are  developing  new  financial  strategies, the sector will concentrate on achieving long-term
        instruments and investment strategies to manage our capital  financial sustainability.”
        structure more efficiently.” .
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