Turkey: Finance minister says govt to act to boost insurance sector
Source: Middle East Insurance Review | Feb 2021
The government will take concrete steps to move the insurance and private pension industry forward, said media reports citing Turkish Finance Minister Lutfi Elvan.
“We are working on innovations that will make it attractive for our citizens to save through the private pension system. The Insurance and Private Pension Regulation and Supervision Agency has also started preparations for the development of participation insurance (takaful),” said Mr Elvan.
The sector, which fulfils the function of providing savings to the country’s economy, continues to grow steadily every year, according to an Anadolu Agency report.
He noted that a total of 63 companies operated in the sector, saying total assets have touched TRY284bn ($38bn), total premiums have hit TRY59bn and the total number of participants has reached 12.5m people. The sector employs over 100,000 people.
Separately, the CEO of the Turkey Wealth Fund (TWF) said the insurance sector and Islamic financial products have great potential in Turkey, and both should be encouraged.
Mr Zafer Sonmez, speaking at a sectoral meeting, pointed out that the share of the banking system in Turkey’s financial sector is huge, adding that 95% of the sector consists of banking, and “this is not healthy”. He added that insurance companies need to have a stronger placing, such as in the stock market. M