The Turkish government has released its Medium-Term Programme (MTP), a roadmap for the economy, covering the years 2027-2029, that will focus on large-scale industrial manufacturing, agricultural development, public procurement to spur domestic production, and high-value exports via project-based funding.
The economic plan also promotes financial resilience against disasters, long-term savings and non-bank financing, reported Anadolu Agency.
Opportunities for insurance sector
Mr Ahmet Yasar, President of the Insurance Association of Turkiye (TSB), told the local media that the new MTP opens up significant opportunities for the insurance sector.
He emphasised that the programme's focus on strengthening economic resilience is particularly significant for the insurance sector. He said, “We are talking about a very broad range of risks, from energy and water supply security to agricultural resilience, from strategic sectors to disaster risks. Insurance is one of the fundamental financial tools for economic and social resilience through the proactive management of risks, the sharing of economic losses, and the reduction of the burden on public finances."
Disaster insurance
As an example, he said that the 6 February earthquakes in 2023 revealed the economic and financial dimensions of disaster risks. He pointed out that expenditures related to the earthquakes are expected to reach TRY5.4tn or approximately $104bn at 2026 rates for the period 2023-2026. An additional $10bn in spending is expected in 2027, which would take the projected total expenditure to be around $116bn.
"Therefore, we believe that in addition to providing relief for losses with public resources after a disaster, urban transformation policies that reduce risk before a disaster should be accelerated, and a larger portion of the remaining risk should be shared through insurance, reinsurance, and capital markets."
He added that the TSB views the extension of the scope of Compulsory Disaster Insurance, from covering earthquakes to other forms of disasters, as an important element of the holistic approach to strengthening financial resilience against disasters.
Export insurance
Mr Yasar also noted the MTP’s goal for more effective use of export insurance, stating that as Turkey's export targets grow, protecting companies against commercial and political risks will facilitate opening up to new markets. He emphasised that insurance should not be seen as a secondary factor complementing export policy, but rather as one of the fundamental tools of export policies, along with financing.
Non-bank funding
He stated that it is important for Turkey to transition from a structure primarily financed through the banking system to a more balanced financial architecture. He said that the weight of insurance, pension, capital markets, and other non-bank financial institutions in the financing system should be increased.
Noting that the MTP’s aims to increase long-term savings are of particular importance for the insurance and pension sectors, he said that the growth of life insurance and the Individual Pension System will not only secure individuals' futures but also contribute to the creation of long-term domestic resources needed by the economy.
Green and digital transformation
He also noted that the goal of accelerating green and digital transformation creates new opportunities for the insurance sector. He said that the role of the insurance sector is becoming increasingly critical in properly managing the new risks brought about by this transformation, from renewable energy investments to energy efficiency, from climate risks to new technologies and digital infrastructure.
The next step
Mr Yasar said, “In the coming period, as a sector, we will need to focus more on shifting from nominal premium increases due to inflation to real growth, increasing the number of policies and policyholders, sustainable technical profitability and increasing insurance penetration.”
He stated that increasing the share of insurance in the Turkish economy, reducing the protection gap, and enabling a wider segment of the population to access insurance coverage, will be among the sector's key priorities.