Page 21 - Turkinsurance Digital Magazine

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Just as in
BES, we see
significant
growth
potential
ahead in life
insurance
as well.

We are carrying out dedicated work for this generation. First pressure in terms of sustainability. Twenty years ago, there
of all, the product must truly be beneficial. Then, this benefit were 6–7 active workers paying premiums for every retiree.
must be communicated in the right way. For example, our Today, this ratio has dropped to around 1.5. In other words,
BES product for individuals under 18 includes an additional the pension and healthcare expenses of one retiree are being
advantage that many of our competitors do not offer: If one financed by the premiums collected from 1.5 workers — a
of the parents passes away — a scenario we never wish to structure that is not sustainable.
see — we, as the company, continue to pay the contribution
amounts until the child reaches the age of 18. And this is not unique to Türkiye. All countries that aged
before us faced the same challenge, and the solution always
At the moment, we have 35 children for whom we are mak- passed through second-pillar pension systems. Therefore, for
ing these payments. This shows that the product is not only us, TES is not a system we say “it would be nice to have,”
designed for saving purposes but also provides a significant but a system we say “it must exist.”
layer of protection.
Of course, there are some concerns on the employer side. It
Of course, the product being strong is only part of the equa- is often stated that labor costs are rising and that compet-
tion — how it is presented to the younger generation is itiveness may weaken — and this is true. For that reason,
equally important. This generation lives in a digital world. an acceptable starting point is needed. Initially, a 3% con-
Therefore, we are digitalizing both our products and service tribution rate was proposed, but this may begin at around
processes. We are also working on making them simpler, be- 1–1.5%. What truly matters is that the system is implement-
cause this generation does not appreciate complex explana- ed as soon as possible.
tions. The product needs to be easy to understand and easily
accessible. As stated in the Medium-Term Program, the plan is for the
system to go live in the second quarter of 2026. This is a very
For this reason, digitalization and simplification are our two welcome development for us — not only for sectoral growth
main strategies for reaching the younger generation. but also for the future of the social security system.

How is Garanti BBVA Emeklilik preparing for the According to our projections, once TES becomes operation-
TES process? What kind of transformation do you al, it may be possible to reach 20 million participants within
foresee in the BES ecosystem once TES is imple- two years. In terms of fund size, moving from today’s 3%
mented? level to around 10% is also feasible. This would be a monu-
mental step both for the sector and for the national economy.
The Complementary Pension System (TES) has, in fact, be- Therefore, we view TES not merely as a growth opportunity,
come a necessity. Today in Türkiye, the social security struc- but as an essential step for ensuring the sustainability of our
ture is carried out by SGK. However, it is under significant social security system.