Page 33 - Turkinsurance Digital Magazine

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Following the February 6 earthquakes, public attention turned prehensive educational initiatives through public-private part-
decisively toward the insurance sector. With its accumulated nerships. As the Insurance Association of Türkiye (TSB), we
knowledge and experience, the insurance sector has the poten- have recently placed education at the center of our efforts,
tial to take the lead in improving risk management and insur- striving to take part in many activities from primary school to
ance awareness. However, there is also a need for innovative university levels.
reforms to clarify certain grey areas—especially those con-
cerning insurance coverage—and to promote the widespread
adoption of insurance. What new priorities will the Association focus on in the
upcoming period? As a unifying force in the industry,
Earthquake coverage should not be treated solely as insurance what are the primary goals of the Insurance Association
for buildings and industrial facilities; it is also optionally in- of Türkiye (TSB)?
cluded in motor own damage, personal accident, and liability
insurance policies. Yet in our country, earthquake risk is too As a sector, we are now discussing our targets for the year
critical to be left to individual discretion. 2030. We launched the Search Conference series in September
2024 and followed it up with the Prioritization Conference and
The dynamic and fast-moving nature of trade and industry then the Consensus Workshop. Many professionals from across
makes it imperative to support SMEs by improving their risk our sector ecosystem participated in these three events, and we
profiles and increasing their insurance coverage ratios.To that achieved valuable outcomes. This collective effort, undertaken
end, the agenda includes proposals to harmonize the fragment- to leave a safer country for future generations, has not only
ed and varied coverages across different insurance lines into a symbolized the peaceful and secure unity of the Turkish insur-
clearer and more simplified structure. ance industry but also demonstrated a strong determination
to eliminate Türkiye’s protection gaps—ranging from earth-
quakes to climate change risks, and from health to aging.
Non-life insurance grew by 47.9%, while life
insurance increased by 81.4%. Our priorities, which will drive our sector toward the goal of
doubling in size by 2030, have been clearly defined as follows:
Attention has been drawn to solutions that blend expertise with
technological innovation to address issues such as delays in • Complementary Pension System
risk inspection, damage assessment, and claim payments, as • Innovative Insurance Solutions for Existing and Emerging
well as challenges related to inter-agency data and technology Risks
integration. • Insurance Employment Promotion Project
• Vocational Training and Certification
Some of the initiatives outlined in the Earthquake Reform • Embedded Insurance Applications (GSU)
Agenda have already been implemented over time, including • Shifting the Focus of Health Insurance from Treatment to
inflation-indexed coverage limits in DASK (Turkish Catastro- Protection (STK)
phe Insurance Pool) and ZDS (Compulsory Earthquake Insur- • Determination of Distribution Channels Based on Insurance
ance), and the Emergency Needs Support planned to be includ- Branches and Business Models
ed in ZAS (Compulsory Disaster Insurance). • Strengthening Public Trust in the Insurance Sector
• Mandatory Products – Products Required by Law
Insurance awareness is still not at the desired level. • Claims File Information/Tracking Screen Project
Are there new strategies on the agenda, particularly to • Development of Savings-Based Life Insurance Products
increase participation on the individual side?
As we implement these steps one by one, our sector will em-
Over the past 10 years, insurance awareness in Türkiye has bark on a safer and more stable journey into the future.
increased significantly. Thanks to digitalization, product di- Among the key challenges limiting the growth potential of our
versification, and public awareness campaigns, insurance has insurance sector are the low level of insurance awareness, bu-
become more recognized and widely used. reaucratic procedures within regulations, difficulties in adapt-
ing to digital transformation, increasing risks, and the need to
As a result of these efforts, the total insurance penetration rate enhance the customer experience.
has reached 2.8%, the highest level in the past decade. Howev-
er, this figure remains well below the OECD country average. Expectations from economic management include supporting
Life insurance penetration stands at just 0.3%, indicating that campaigns aimed at increasing insurance awareness, simpli-
the sector still has significant room for growth. fying regulatory procedures, encouraging technology invest-
ments, developing risk-sharing models, and expanding custom-
Although the rise in insurance awareness is promising, boost- er-focused digital solutions. These measures will significantly
ing penetration further will require promoting long-term contribute to the sector’s sustainable growth.
saving habits, expanding digital access, and continuing com-