TSB President Uğur Gülen: “Strong Insurance for a Strong Turkey”

The umbrella organization of the insurance sector, the Insurance Association of Turkey, is bringing together representatives from the insurance industry around the world with the theme “Disaster Risks and Insurance” at the “2nd International Insurance Summit” organized during the 12th Insurance Week. Minister of Treasury and Finance Osman Çelik and President of the Insurance and Private Pension Regulatory and Supervisory Authority (SEDDK) Akif Eroğlu made important statements at the summit.

The Insurance Association of Turkey (TSB), the guiding organization of the sector working to expand the insurance sector and add value to the Turkish economy, is hosting the sector’s most important gathering with the 2nd International Insurance Summit organized during the 12th Insurance Week. Among the speakers at the opening of the summit are representatives of the insurance sectors of countries that have recently experienced earthquakes, such as Japan, New Zealand, and Greece, as well as Prof. Dr. Kerem Alkin, the Permanent Representative of OECD Turkey, and Psychologist Beyhan Budak.

Speaking at the opening of the Summit with the theme “Disaster Risks and Insurance: The Role of Insurers in Reducing the Effects of Disasters,” Deputy Minister of Treasury and Finance Osman Çelik said, “The contribution of the insurance and private pension sector, which has about a 5% share in the financial sector, to our economy is far beyond its share. Moreover, these sectors are very important for the Medium-Term Program (OVP), which is based on the vision of Turkey Century and includes healing the wounds of disasters, macrofinancial stability, reducing inflation to single digits, and ensuring growth and employment continuity.”

Osman Çelik, touching on the steps to be taken within the scope of the OVP, stated that citizens will be protected against all disasters through the disaster insurance mechanism, the Automatic Enrollment System will transform into the Complementary Pension System with the contribution of employers, the Complementary Long-Term Care Insurance will be established due to demographic change and aging, and in addition to Building Completion Insurance, Building Liability Insurance will be promoted to improve construction quality.

Pointing out the ongoing efforts in the Participation Insurance and Retirement Practices, Çelik emphasized the support to the sector in order to evaluate new opportunities in the Turkey Century.

Mehmet Akif Eroğlu, President of the Insurance and Private Pension Regulatory and Supervisory Authority (SEDDK), who spoke at the opening of the 2nd International Insurance Summit, stated that the Insurance Law would be revised within the scope of the Turkey Century vision, and many changes would take place in the period called “Insurance 3.0”. Eroğlu emphasized that many practices, from effective inspections to data regulations with a focus on ‘Market Discipline’, from reforms in related institutions to personal responsibility, would be implemented.

Drawing attention to the improvement seen in company balances, SEDDK President emphasized that sector development is a reflection of the strong growth achieved in the economy despite the global conjuncture, and with the implementation of the Medium-Term Program, the positive momentum in the economy will return to the sector as the interest of international capital.

Eroğlu, who stated that the sector quickly emerged unharmed from the earthquakes known as the disasters of the century, mentioned that work had started for the expected Marmara earthquake. Eroğlu continued his words as follows: “We asked companies to conduct stress tests and scenario assessments to ensure their financial resilience. With the regulation for the balancing reserve, we will accumulate funds quickly. In addition, we are expanding the coverage of mandatory earthquake insurance, and we are making reform-like changes that will also include optional home insurance. By introducing an inflation clause in policies, we will protect our policyholders not only against earthquake risks but also against inflation. We will further develop the ecosystem with insurance companies at its center.”

Uğur Gülen, President of the Insurance Association of Turkey, emphasized the coverage gap that emerged after the Kahramanmaraş earthquake in his opening speech at the 2nd International Insurance Summit. TSB President Gülen continued his words as follows: “The loss that occurred after the February 6th earthquakes is 105 billion dollars. The payments made are at the level of 5 billion dollars. In the light of your motto ‘Knowing the Value of Insurance,’ in this period when we better understand the importance of insurance, we all have responsibilities in raising this awareness and rapidly closing the coverage gap.”

Emphasizing that the International Insurance Summit is a valuable platform and meeting point to discuss the role of the insurance sector and development areas in the face of disasters, Gülen said, “As the insurance companies at the center of the insurance ecosystem and the guiding organization of the sector, TSB, we are conducting all our efforts in the context of expanding this ecosystem and expanding the protection shield it provides. In this context, SEDDK’s pioneering efforts to encourage the sector to ‘run faster’ are very valuable. We will continue to work with all our might to grow, develop, and benefit the insurance ecosystem in cooperation with the public and private sectors, for the benefit of our country and our citizens. Because we know that a strong insurance sector means a strong Turkey.”

After the opening speeches of the 2nd International Insurance Summit, the event continued with a panel titled “The Role of Insurers: The Contribution of Insurers in Mitigating the Effects of Catastrophic Disasters and Lessons Learned.” The panel was attended by Hayato Komada, a member of the Board of Directors of the Japan Life Insurance Association, Elina Papaspyropoulou, General Manager of the Hellenic Association of Insurance Companies, Mehmet Üvez, the Ankara Office President and Deputy Country Director of EBRD, and Tim Grafton, President of the Insurance Council of New Zealand.

The first day of the event, which will feature a speech by OECD Turkey’s Permanent Representative, Ambassador Prof. Dr. Kerem Alkin, will continue with a panel titled “Enhancing Financial Protection Against Disaster Risks: The Role of Disaster Risk Insurance Programs: Public-Private Sector Collaborations.”

The summit’s first day will also address the topic of “The Contribution of Reinsurance in Managing Catastrophic Risks.” The second day of the summit on September 26th will focus on earthquakes and the construction of resilient cities, with Prof. Dr. Naci Görür among the guests.