Finance and Treasury Minister Berat Albayrak, speaking at the Turkey Insurance Promotion Ceremony held at the Beştepe National Congress and Culture Center with the participation of President Recep Tayyip Erdoğan, said that a historic day was experienced for the Turkish insurance sector.
Albayrak stated that the insurance and pension sector ensures the continuity of economic and social life by taking over the risks of individuals and institutions, and alleviates the burden on the public in earthquakes and other natural disasters. He also explained that the sector fulfills the function of providing financing needed for economic growth with the funds accumulated.
Pointing out that the higher the contribution of the Turkish insurance and pension sector to the accumulation of funds, the greater the contribution to the country’s growth and development, Albayrak indicated that the sector currently ranks 39th in the world with its current capacity, which falls far behind the goals aimed at becoming a great and strong Turkey.
Albayrak emphasized the critical importance of the insurance and pension sectors for economic stability and development, noting that they have included these sectors, which are below their potential, among the “strategic sectors” within the framework of the new economic model in line with their goals. He also reminded that as part of the New Economic Plan, they first established the Insurance and Private Pension Regulation and Supervision Institution (SEDDK), and then established the Turkish Reinsurance Inc. (Turk RE) with 100% Treasury capital to achieve the goal of bringing the insurance sector to the desired level.
Albayrak stressed the significance of establishing a market-guiding, strong, and leading insurance company as another critical link in achieving the desired efficiency from these two fundamental reform moves. He expressed that the newly formed Turkey Insurance, resulting from the merger of public insurance and pension companies, will be one of the most important links in these reformist moves. With the strength of the public and the confidence provided by the Sovereign Wealth Fund, Turkey Insurance will, God willing, be able to guide the sector, and will be a strong market player in regional and global competition as part of the public economic vision alongside profit motives. He expressed confidence that Turkey Insurance will take the insurance services to the grassroots and will elevate the country’s insurance sector to a more effective position in global competition with the goal of becoming a global brand in the coming period, carrying out an important mission for the continuity of stable growth.
Albayrak highlighted that Turkey, in such a period when the world economies are going through an unprecedented uncertainty and crisis with its strong economy and solid financial infrastructure, continues its investments, projects, and perhaps most importantly, strategic reforms without slowing down. He noted that the wheels in the industry continue to turn strongly. When we put aside gold, which is not a consumption good but a capital good and does not create a funding gap for our country, and which is not included in the classic import of goods and services, because our gold imports are decreasing, our current account deficit continues to decrease. If it weren’t for the new type of coronavirus (Covid-19) outbreak this year, we would have had a $40 billion tourism income in our budget. When we factor in the tourism revenues we lost due to the outbreak in the first 8 months of the year under normal conditions, just like last year, Turkey would have continued with a surplus, not a deficit. We are continuing our steps towards our goals with strong coordination in the economy with all our institutions. We are working for a growth model based on value-added production, employment, and exports. Hopefully, we will witness that the recovery is felt much more seriously by all stakeholders, all segments, and all our citizens in a very close period.
Source: https://www.aa.com.tr/en/economy/minister-albayrak-turkey-insurance-will-be-a-strong-market-player-in-global-competition/1965378
